Hotel assn urges govt to impose 5% GST

Sukhmeet Bhasin

Tribune News Service

Bathinda, March 26

The Punjab Hotel Association urged the government to impose only five per cent Good and Services Tax (GST) on the hotel industry.

The association also demanded that the government should take some steps to infuse a new life into the industry that they say is reeling under economic crisis.

A meeting of the Punjab Hotel Association was held here today. The meeting was headed by state president of the association, Satish Arora. Hoteliers from all across the state attended the meeting.

While addressing the meeting, Satish Arora said, “The hotel industry has been affected due to economic crisis for a long time. After demonetisation, the business of most of the hotels and restaurants has drastically gone down. The government has not provided any relief to the hotel industry by imposing 18 per cent GST. At present, we are paying 21 per cent tax and reducing the tax by just three per cent will not help us”

“There is just six per cent tax on the hotel industry in Malaysia while in Singapore it is just seven per cent. In Japan its five per cent, seven per cent in Thailand and six per cent in Sri Lanka. In Hong Kong, there is no tax on the hotel industry as the local government thinks that by keeping tax free, tourism will flourish and the industry will emerge,” he added.

They also urged the government to take strict action against those who threaten the hoteliers by misusing the PPL licence.

The members also want 24-hour power supply to the hotels at the current cost.

While addressing the meeting, CEO of the association APS Chatha said, “The association should remain united as we are doing very well. The government should open hotel management institutes in every district so that the youth can get training and employment in his city. The issue of staff shortage will also be solved with this move.”

Gurmukh Dhillon and Gurpal Singh, from Patiala association, said, “The culture of wine and dine in cars should also be done with away. Strict action should be initiated against those eating joints that allow people to carry liquor along with them for drinking in cars in the open. Bar owners pay a huge amount in the form of licence fee and with this step, they face economic loss.”