Small hoteliers get tax sops

Giving a sigh of relief to the small hoteliers in the tourist state, the Goa government during its Budget for 2007-08 exempted them from levy of luxury tax and imposed environment cess on electricity bills.

The hotel rooms with rent up to Rs 500 have been exempted from levy of luxury tax. However, those hotels where the room rents are Rs 501 and above per day, the existing slabs of tax rate at 5 per cent, 8 per cent and 10 per cent will continue.

"In order to promote energy conservation measures and also use of non-conventional source of energy, the energy cess of 0.5 per cent on the gross electricity consumption to those consuming more than 500 units per month has been imposed," chief minister Pratapsingh Rane said in his Budget.

Rane informed the House that the state government expects to generate additional revenue of Rs 2.5 crore per year. "This amount will be used for special fund to tackle existing garbage menace in the state," he added.

The Goa government has worked out a separate action plan for infrastructure development like good roads, uninterrupted water supply and electricity to industries in consultation with the Chamber of Commerce and Small Scale Industries Association and funds for the same would be generated by levying increased tariff, according to the chief minister.

In a bid to promote the information technology industry, the rate of tax on inter-state sale of IT products has been reduced from one per cent to zero per cent.