The hospitality industry in Gujarat has come up with fresh set of demands even as the government expedites the process of launching the state tourism policy soon. The hospitality players have been seeking relief measures which could be included in the upcoming policy.
"The state tourism department officials have been meeting up with the hospitality industry players ahead of the tourism policy. We have suggested several measures that could be incorporated in the draft policy that is expected to come up soon," said Ashwin Gandhi, convenor - tourism, Confederation of Indian Industry (CII) and member of Gujarat Rajya Hotel Federation.
Among some of the measures, the industry has sought reduction in electricity duty for hospitality industry from "present 25 per cent to 10 per cent for high tension (HT) and low tension (LT) consumers as applicable to other industries in Gujarat since tourism has been treated as an industry for all purposes". Among fuels, the industry has sought total exemption of value added tax (VAT) on natural gas consumed. Currently, hospitality players have to pay about 15 per cent VAT on natural gas consumed.
On its part, the state government has already adhered to some of the suggestions made by the industry.
"We have been taking measures for the benefit of the hospitality industry in a bid to boost tourism. For instance, we have allowed additional 25 per cent floor space index (FSI) to the industry as demanded earlier. However, it is yet to be seen what measures can be incorporated into the policy," said Jaynarayan Vyas, minister for tourism, Government of Gujarat (GoG).
Among other measures sought, the industry has suggested increase in professional tax from Rs 3000 to Rs 7000, and levying of luxury tax of five per cent for actual tariffs between Rs 1001 and Rs 3000 and eight per cent for Rs 3001 and above.
"More importantly, these measures should be extended not only to hotels but also restaurants who form part of the 'industry'," added Gandhi.