| The Tax Barometer is composed of four trip elements:
lodging, car rental, meals, and airport arrival and departure. Each element of the
trip is priced according to a standard purchase by a hypothetical "WTTC
Traveler" in each destination.
This trip includes
the purchase of four nights' lodging, four days'
car rental, twelve meals, and one set of international arrival and departure
airport charges. Taxes imposed on these purchases are then
identified, recorded, and developed into a sector index. Next, these elements are
aggregated into a composite index for the destination, based on the average cost of each
element included in the standardized trip. If you would like more information on the
development of the Tax Barometer, please refer to our research methodology. |
 |
Rank |
|
Total tax $ for 5-day/4-night trip: |
$221.99 |
39 |
|
Percentage of total item cost: |
13.90% |
21 |
|
Overall tax index: |
64 |
1 |
The first item in the above table represents
the combined tax total
paid by the WTTC Traveler in each of the four sectors in
Mumbai. The second
item (percentage of total
item cost)
indicates what percentage of the total bill
is devoted to taxes.
The last item (overall tax index)
reflects the cumulative change in the amount
of tax paid in U.S. dollars between June 1994 and
June 2002.
The rankings show how
Mumbai compares with other Tax Barometer cities; a ranking of 1
is most competitive, while a ranking of 52 is least competitive.
Summary:
Mumbai
currently has an overall Tax Barometer index of 64,
indicating a 36%
decrease in
travel-related taxes since June 15, 1994,
the greatest decrease among all 52 surveyed destinations.
This change can be
attributed to decreases in the lodging and restaurant sectors, which
helped offset increases in the car rental and air passenger sectors. For a five-day, four-night trip to
Mumbai, travelers
can expect to pay approximately $222.00 in tourism-related taxes, a
total that ranks as the 14th highest among all
surveyed destinations. |
 |
Rank |
|
Average price for 4-day rental (mid-size) without taxes: |
$320.00 |
- |
|
Service tax: |
5.00% |
- |
|
Total charges for 4-day rental with taxes: |
$336.00 |
- |
|
Total tax $ for 4-day rental: |
$16.00 |
7 |
|
Percentage of total car rental cost: |
4.76% |
4 |
|
Car rental tax index: |
407 |
49 |
|
Summary:
Car rental taxes in Mumbai have increased 307% since 1994, the
third highest increase among all 52 surveyed destinations. In
the base index, the only applicable tax was an INR 2.00 per hour fee,
which amounted to INR 192.00 for a five day rental. This tax was
replaced in favor of a 5.0% service tax and a INR 5.00 per hour fee in
1998. The index was lowered in 2001 when the INR 5.00 per hour
fee was eliminated. Despite these increases, taxes on car
rentals remain low in comparison to other destinations. For a
four-day, mid-sized car rental, visitors to Mumbai can expect to pay
around
$16.00 in taxes, a total that ranks as the seventh lowest among all
surveyed destinations. |
 |
Rank |
|
Average price for 4-nights lodging without taxes: |
$795.99 |
- |
|
Luxury tax: |
6.00% |
 |
|
Expenditure tax: |
10.00% |
- |
| Total
charges for 4-nights lodging with taxes: |
$923.34 |
- |
|
Total tax $ for four-nights: |
$127.35 |
48 |
|
Percentage of total hotel room cost: |
13.79% |
38 |
|
Hotel
tax index: |
53 |
1 |
(
in rank column indicates a tax increase in Tax Barometer No. 11)
Summary: Hotel taxes have decreased by
47% in Mumbai since 1994, the greatest decrease among all 52
surveyed destinations. This change can be attributed to a 10.00%
decrease in the expenditure tax, which was levied at a rate of 20.00%
in the inaugural Barometer, and a 4% decrease in the luxury tax. Visitors can expect to pay around
$127.00 in taxes for four nights lodging, a total that ranks as the
fifth highest among all surveyed destinations. |
 |
Rank |
|
Average price for 12 restaurant meals
without taxes: |
$273.60 |
- |
|
Sales tax: |
23.50% |
- |
|
Total charges for 12 meals with taxes: |
$337.90 |
- |
|
Total tax $ for 12 meals: |
$64.30 |
47 |
|
Percentage of total restaurant meals cost: |
19.03% |
52 |
|
Restaurant tax index: |
67 |
4 |
Summary: Restaurant meal taxes have declined 33% in Mumbai
since 1994, the fourth greatest decrease among any surveyed
destination. This change can be attributed to the elimination of
the expenditure tax, which is levied at a rate of 20.0% in the base
index. This more than offset an increase in the sales tax, which
was increased from its base index level of 15.0% to its current 23.5%
level.
Despite these reductions, visitors can still expect to pay around $64.00 in taxes for 12 restaurant
meals, a total that ranks as the sixth highest among all surveyed
destinations. Taxes represent over 19.0% of the final restaurant
bill, a percentage that is the highest among all surveyed
destinations. |
 |
Rank |
|
Foreign travel tax: |
INR 500.00 |
- |
|
International passenger service fee: |
INR 200.00 |
- |
|
Total tax $ for international arrival and departure: |
$14.34 |
20 |
|
Percentage of total trip cost: |
0.90% |
11 |
|
Air passenger tax index: |
234 |
44 |
Summary:
Taxes on international airline passengers have increased 134% in
Mumbai since 1994, the eighth highest increase among all surveyed
destinations. This change can be attributed to the introduction
of a new INR 200.00 passenger service fee in 2001. The index was
also affected by a INR 200.00 increase in the foreign travel tax which
occurred in 1998. The $14.34 in taxes levied on air passengers ranks as the
20th lowest among all surveyed destinations. |
 |
|
Barometer No. 5:
The foreign travel
tax was increased from INR 300.00 to INR 750.00.
Barometer No. 6:
The foreign travel
tax was reduced from INR 750.00 to INR 500.00.
Barometer No. 8:
The car rental index was adjusted to reflect
a 5.0% service tax and an INR 5.00/hr fee
which is collected in place of a previously reported INR 500.00 tax.
Barometer No.
10:
The INR 5.00 per hour fee on car rentals was eliminated. In addition,
corrections were made to the lodging and restaurant indices; the
corrected tax rates reflect a 10.0% expenditure tax and a 10.0% luxury
tax in the lodging sector, and a 20.0% sales tax and 10.0% expenditure
tax for the restaurant sector. The corrections, coupled with
corrections in the base index, lower both indices. In the airline
sector, a new INR 200.00 international passenger service fee was
introduced on 4-1-01.
Barometer No. 11:
The luxury tax on
hotel rooms was lowered from 10.0% to 6.0%. In the restaurant sector,
the 10.0% expenditure tax was eliminated completely, although this was
offset somewhat by an increase in the restaurant sales tax (from 20.0%
to 23.5%).
|
|
