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Hotel body seeks duty relief from Gujarat

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BS Reporter Mumbi/Ahmedabad

"There are a few authentic ingredients of the Thai, Malaysian, Hyderabadi, Goan and Continental cuisines which are available only outside Gujarat. Therefore, we have requested the state government to allow at least 20 per cent of total purchases from outside the state," said S P Jain, senior vice-president of HRAWI.

The association has also requested the government to charge luxury tax only on actual tariff rather than on printed tariff. Explaining the rationale behind the request, Jain said that the actual tariff tends to be 15-20 per cent less than the printed tariff.

 

"The actual tariff is arrived at after deducting discounts and other incentives. But Gujarat charges on the printed tariff leaves the hoteliers paying 2-3 per cent more," said Jain.

Unlike other states, Gujarat also charges electricity duty of around 25 per cent, which the association has requested to be brought down to less than 20 per cent, Jain added.

He said that the move will boost an increase in number of rooms in the state. With current availability at 30,000 rooms, there is a shortage of 15,000-20,000 rooms. The move will also raise the tourism growth rate from six per cent to eight per cent, he added.

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First Published: May 15 2008 | 12:00 AM IST

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