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Maharashtra - HRA appeals to exempt members from luxury tax, VAT  

The HRA has appealed to the Maharashtra government to exempt its members from luxury tax, VAT and electricity charges for at least two years in the forthcoming budget as the hospitality industry has been badly affected due to recession and 26/11 terror attacks.



 

Government aid will help the industry to cater to its clientele. The hospitality industry has been badly hit after the Mumbai terror attacks, Hotel and Restaurant Association (Western Region) President S P Jain told reporters here on Thursday.

Number of foreign tourists visiting India and particularly Mumbai has considerably come down and the occupancy percentage in various hotels has also reduced drastically, Jain said.

Nearly 100 restaurants have closed down in Mumbai alone due to the high impact of VAT charges, he said.

The electricity rate charged on hotels and restaurants is at the commercial rate of 13 per cent in Maharashtra, as against six per cent levied on industrial units. Hence, it is essential that a parity is brought about, he added.

Hotel industry is also one of the largest industry which provides employment to large section of the society, he said.

The HRA also demanded that government should change its Coastal Regulation Zone (CRZ) policy so that more hotels can come near coastal zones especially in Maharashtra and Gujarat, Jain added. 

Source : Hindu - Chennai, India,  dated 29/01/2009

 

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