Hotels and Restaurants in Gujarat want 6-month tax holiday

The Hotels and Restaurants Association (HRA) of Gujarat has sought a six-month tax holiday from the state government, over losses incurred by the tourism and hospitality sector due to the Covid-19 pandemic. In a representation made to the state government recently, HRA Gujarat said the hospitality sector is reeling from a severe working capital crunch.

The hospitality sector needs a lot of working capital which has taken a 90% hit. Paying GST and advance taxes, excise, licences fees, property tax and electricity duty will be extremely difficult. Moreover, several hoteliers had taken loans to construct and run establishments and in such times, timely payment of EMIs will be difficult

The association has sought a tax holiday from GST payments up to March 31, 2021. They have sought that the interest subsidy given to new hotels be extended to existing ones as well. The association also sought an electricity duty waiver for one year. The property tax for 2020-21 should be completely waived while that for 2021-22 should be cut by 50%
The association has also sought a complete waiver of VAT on gas charges.