TAX INCENTIVES FOR GREEN TOURISM IN UTTARAKHAND

Tourism is booming worldwide, and Uttarakhand's natural beauty makes it a hot spot for visitors. But with more tourists comes more environmental damage. Tourism is a big part of Uttarakhand's economy, but it is also harming the environment. Sustainable tourism aims to fix this by balancing development with protecting nature. This study looks at how Uttarakhand can promote sustainable tourism by using taxes in smart ways. By charging tourists a little extra, the government can raise money to protect the environment, build better facilities, and advertise tourism responsibly. The goal is to see if these tax incentives can help make tourism in Uttarakhand more sustainable and less harmful to the environment.From 2006–07 to 2016–17, tourism accounted for over 50% of Uttarakhand's Gross State Domestic Product (GSDP), showing its economic importance. To evaluate the effectiveness of tax incentives, we are analysing data from government reports, academic studies, industry publications, and online databases. This will help us understand what strategies might work best for promoting sustainable tourism in Uttarakhand. Additionally, the analysis reveals that over the given period (2015-2021), the average rate of growth or decline in tourism for Uttarakhand is approximately 2.33% for Indian tourists and approximately -11.42% for foreign tourists. Despite positive growth rates from 2015 to 2019, the industry experienced a decline in 2020 and 2021 due to the COVID-19 pandemic. If we exclude the pandemic years, the average rate of growth for Indian tourists is approximately 7.18%, and for foreign tourists, it is approximately 9.52%. Furthermore, it was observed that accurately charged, small tourism taxes are generally accepted by tourists, provided the government transparently showcases how these funds are utilized to enhance tourism facilities.Keywords: Sustainable tourism, Environment, Tourism Tax, Promotion, etc.