Wonderla Holidays receives a major boost after the goods and services tax (GST) rate on amusement and theme parks was slashed from 28 percent to 18 percent. The stock is up over 6 percent in trade today.
In an interview with CNBC-TV18, Arun K Chittilappilly, MD of Wonderla Holidays discussed the impact of the GST rate revision.
The company has been adversely affected by GST because our effective tax rates have gone up substantially ever since GST came. Our tax rate before GST was about 15-16 percent and with that, it becomes 28 percent and now with this correction, it has gone back to 18 percent. That will bring down our prices by 10 percent and that should definitely help us with our foot-falls, he said.
When the GST regime kicked in, we had increased our prices to pass on all the impact to the customers and we had seen a decline in demand for the last year, he added.
We are hoping that this will help us revive some of the foot-falls, said Chittilappilly.
The real impact of this will be seen in FY19, he further mentioned.