As many as 40,000 non-star hotels and restaurants in the Telangana State have pulled down their shutters on Tuesday in response to a bandh call given by the Southern States Hotels Association as a protest against levying 18 percent GST.
As part of the central government’s move for “one nation one tax” policy, the GST would come into force from July 1. While the GST is made applicable to all the hotels and restaurants, the star hotels are exempted from this new tax policy.
Telangana State Hotels Association President Venkat Reddy opined that the new policy of levying tax on the hotels and restaurants as per the GST was bound to put a heavy burden. Apart from the middle class cliental being affected, it would also have an adverse effect on tourism industry, he observed. Therefore he demanded that not only the tax on the hotels and restaurants should be reduced, a feasible taxation policy for star and non-star hotels should be formulated and implemented, he observed.
President of Hyderabad Hotels Association Ashok Reddy pointed out that hotel industry was playing a prominent role in giving a boost to the tourism sector. But the taxation policy under the GST would cripple the hotel industry and hence wanted the central government to reconsider its policy ion this regard as for as hotel industry was concerned.
Vice President of Southern States Hotels Association Somaraju said that over two lakh staff and employees working in the hotel industry are taking part in the bandh. (NSS)