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Hospitality sector demands ‘industry' status

Staff Reporter

BANGALORE: The Karnataka Pradesha Hotel Mattu Upahara Mandiragala Sangha has again urged the State Government to accord ‘industry' status to the hospitality sector under its new tourism policy.

Making this demand in its pre-budget memorandum placed before the Government, the sangha said according industry status to the sector would go a long way in boosting the hospitality and tourism sectors in the State. Since hotels render yeoman service to the public, they should not be charged commercial tariff for water and power connections, former sangha president and its adviser, K.L. Ramanath Bhat, told The Hindu.

He said the sangha has also urged the Government to enhance the sales tax exemption limit from the prevailing Rs. 5 lakh to Rs. 50 lakh. Thereafter, the existing 4 per cent rate should be reduced to 2 per cent. The difference of 12.5 per cent in taxation rate between vegetarian and non-vegetarian restaurants is abnormal and should be reduced, he demanded.

Mr. Bhat noted that the levy of 10 per cent luxury tax on marriage and banquet halls should be abolished. Luxury tax presently is levied for bills above Rs. 499 and the limit should be increased to Rs. 1,000, he said.

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