Letters to FinMin: Exploit wellness industry as
There is huge unexplored potential in the wellness industry and we are dismayed at the government‘s failure to pay attention to this segment.
February 15, 2013 / 16:29 IST
by Amith Dholakia, Founder, Rudra Day Spa & Salon
Dear Mr Finance Minister,There is huge unexplored potential in the wellness industry and we are dismayed at the government’s failure to pay attention to this segment. There is also considerable confusion in the way the government defines the various components of this industry. As a result, the taxes levied sometimes make no sense.All’s Not WellThe wellness industry consists of different systems of traditional medicine and therapies. Yet, lack of clarity on the government’s part has led to confusion relating to taxation. For instance, ayurveda is tax-free but other therapies attract service tax. There is a very thin line of distinction between ayurveda and other systems of medicine and the government needs to take note of these. Also, there is no consensus on whether service tax is applicable to yoga classes.Here’s another example of the government’s nonchalant attitude. Salons and spas are treated as similar businesses in terms of licensing and land use. Although they have been lumped together, allow me to point out that they have completely distinct business models.Too Holistic?There is no clear-cut accreditation system that would distinguish small-time fly-by-night operations from large corporate holistic resorts. There is no distinction on grounds of training, hygiene and certification. In the bargain, spas like ours are under considerable pressure on the pricing front. This is because small units advertise and market treatments that appear no different from those offered by big players, at ridiculously low prices. But the truth is their therapies are questionable; they do not employ trained therapists; and they function in dubious working environments. Who is monitoring this?More Training InstitutesThe government should also set up more training institutes across the country and promote this small-scale industry. Better hygiene regulation is very welcome. Certification of staff in government-recognised institutes would boost the uneducated and less-educated labour force. Whither Wellness Tourism?Considering the wellness sector is not exactly on the government’s radar, perhaps this would be much to ask. But I must point out that the Ministry of Tourism should actively promote India as a spa and wellness destination. Alternative therapies such as yoga and ayurveda have their roots in our country and tourists from all over the world come here to experience their benefits. It is shocking that the government is not trying to exploit the potential of the wellness sector as a foreign-exchange earner. In fact, South East Asian countries have started capitalising on our culture by marketing yoga and naturopathy at a huge premium.While promoting India as a wellness destination, we would need a 10-year tax holiday. Remember, reputed spas and resorts like ours pay huge sums in property tax, service tax and VAT.Amith Dholakia is a civil engineer with interests in real estate and property development in and around Mumbai. He also runs Rudra Day Spa & Salon.As told to Nikita PeerYou can send your feedback to smementor@moneycontrol.com or simply post comments below Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
