The Hindu : Kerala / Thiruvananthapuram News : Hoteliers up in arms over new tax proposals

Online edition of India's National Newspaper
Wednesday, Jul 11, 2007
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Kerala

Kerala - Thiruvananthapuram

Hoteliers up in arms over new tax proposals

Staff Reporter

Photo: C. Ratheesh Kumar

Calls for ACTION: Leader of the Opposition Oommen Chandy inaugurating a dharna of the Kerala Hotel and Restaurant Association in front of the Secretariat on Tuesday.

Thiruvananthapuram: The Kerala Hotel and Restaurant Association (KHRA) is up in arms against the alleged step-motherly attitude being adopted by the State Government towards the hotel industry which is part and parcel of tourism.

KHRA president K. Kuriakose and general secretary G. Sudhiesh Kumar said Minister for Finance Thomas Isaac failed to implement the long pending demands of the hoteliers and assurances given to them.

The KHRA took out a march to the Secretariat on Tuesday in protest against the attitude of the State Government.

They, later, organised a dharna in front of the Secretariat. Leader of the Opposition Oommen Chandy inaugurated the dharna.

The KHRA was demanding tax exemption for those hoteliers whose annual turnover was up to Rs.25 lakh. The KHRA leaders said only half per cent tax should be levied for turnover above Rs.25 lakh.

The association demanded withdrawal of the hike in luxury tax. The association leaders said the tax should be retained at the previous 7.5 per cent rate. Mr. Kuriakose and Mr. Kumar said although the Supreme Court and High Court had approved the hotel industry as a small-scale industry, the Sate Government was yet to accord the status. The concessions granted to small-scale industry was also not being made available to the hotel industry.

Another demand was to reduce the bar licence fee in the State and to make it on par with that of the neighbouring States. The association demanded immediate steps to contain the hike in the prices of essential commodities.

The KHRA pointed out that consumption of electricity in hotels was not under the control of the proprietor of the hotel. They had suggested that hotels which use more electricity should be granted concession as in the case of subscribers of telephone.

The hike in the building tax would also affect the hotel industry in a big way. The association leaders said tax had been hiked from Rs.8 to Rs.15 for a square metre.

The KHRA demanded that the hike in building tax for hotels should not exceed 10 per cent of the existing rate.

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