LTC Cash voucher continuation under consideration?

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Is the government planning to continue the LTC cash voucher scheme?  Reports indicate that the Finance Minister is considering the Cash Voucher scheme in the upcoming Union Budget 2022. 

Federation of Hotel & Restaurant Associations of India (FHRAI) has urged the finance ministry to review the decision to introduce Leave Travel Concession cash voucher in place of LTC fare to central government employees in the forthcoming Budget.

FHRAI submitted the recommendation a week after sharing its views in the pre-budget meeting called by the Ministry of Finance on December 17.

In a letter to Finance Minister Nirmala Sitharaman, FHRAI Vice President Gurbaxish Singh Kohli urged to "review the decision to introduce LTC cash vouchers in lieu of LTC fare to the Central Government employees".

The government -- on October 12, 2020 -- announced the LTC cash voucher scheme, under which employees can purchase any goods or services with a GST rate of 12 per cent or above to avail of the benefit. It was meant to revive the same and kick start consumption of goods and services after the COVID lockdown.

The payments for such purchases have to be made via digital mode or cheque, demand draft, or NEFT/RTGS.

Earlier employees had only the leave travel concession benefits on travels made or forgo the amount.

Source: www.newindianexpress.com


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