High GST Choking Amusement Sector: IAAPI Demands Cut from 18% to 5%

VMPL

Mumbai (Maharashtra) [India], August 29: The Indian Association of Amusement Parks and Industries (IAAPI), the apex body representing amusement parks, water parks, theme parks, snow parks, trampoline parks, and adventure parks, has made a strong plea to the Government of India to slash GST on the amusement sector from 18% to 5%.

IAAPI stresses that such a move is critical to attract heavy investments in the industry, which

entertains millions of families and children each year. At present, the sector is being stifled under the burden of 18% GST, even as zoos, museums, national parks, war memorials, and melas are taxed at 0%, creating a striking disparity for an industry that contributes equally, if not more, to India's social infrastructure and tourism.

Globally, governments have embraced lower taxes to encourage leisure and tourism: UAE (5%), Bahrain (5%), Canada (5%), Japan (5%), Malaysia (6%), Singapore (7%). India's 18% is among the harshest, pushing away investors and limiting growth in a country with one of the youngest populations in the world.

The impact is especially severe on school-going children, who constitute nearly 70% of visitors. With academic pressure and rising cases of stress and anxiety among youth, amusement parks serve as more than recreation--they are a vital medicine for mental well-being. These venues provide safe spaces for joy, laughter, and family bonding, directly contributing to the nation's

emotional health and social fabric. At a time when India ranks 118 out of 147 countries in the World Happiness Report 2025, IAAPI argues that supporting affordable access to amusement will help uplift the country's Happiness Index and overall quality of life.

The amusement industry is also a powerful generator of employment. From ride operators and

technicians to food courts, merchandise, events, and security, the sector creates lakhs of direct and indirect jobs across the country. Lowering GST will not reduce revenue -- instead, it will fuel higher footfalls, greater formalisation, and stronger compliance, leading to larger overall tax collection

from tickets as well as ancillary services.

Equally important, amusement parks have become an inseparable part of tourism ecosystems. Every park visit translates into business for hotels, restaurants, transport providers, and retail outlets, creating a multiplier effect for local economies. With rationalised taxation, India's

amusement sector can become a cornerstone of tourism-led growth.

IAAPI projects that with GST reduced to 5%, the industry could grow at a 20% CAGR, reaching

₹30,000 crore by 2030 -- far beyond earlier estimates of ₹23,000 crore -- and emerge as one of the most dynamic pillars of India's tourism economy.

Ankur Maheshwari, Chairman of IAAPI, said:

"Amusement is not a luxury; it is social infrastructure that touches the daily lives of children and families. Lowering GST to 5% will make joy affordable, attract heavy investments, and position India's amusement industry as a global tourism powerhouse."

IAAPI appeals to the government to act with urgency and foresight -- to protect jobs, strengthen tourism, and give children and families the affordable happiness they deserve.

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