HOTELIERS oppose move of Punjab Government to introduce one time VAT annually

Ludhiana, July 23, 2013: Members of Hotel and Restaurants Association of Punjab have strongly opposed a move of the state government to introduce one time value added tax (VAT) on annual basis instead of the existing system of taxation.
The association in its meeting held here on Monday, decided to strongly oppose the move. It also decided to start an agitation if this proposal was implemented in the state, as the meeting felt that the hotel and restaurant industry is already facing crisis. It was observed that this industry in Punjab is failing to compete with the industry in other states, as it is already burdened with multiple taxes.
The association president Manjit Singh Nagpal and general secretary Amarvir Singh told the media persons that the Excise and Taxation Commissioner (ETC), Punjab had invited them for a meeting recently, in which they were informed about move of the state government. They revealed that ETC, Punjab had sought their suggestions on the matter.
They regretted that they were already trying to get reduce burden of taxes on the hotels and restaurants in Punjab and now the state government wants to burden them economically by introducing new policy of VAT on them. They said the state government proposed to introduce one time VAT annually on the basis of occupancy of the total seating capacity and rates list of food served during breakfast, lunch and dinner in the hotels and restaurants. The state government wants to introduce VAT on fifty per cent of the total occupancy, they revealed.
They told that they are not agreeing to this proposal because the occupancy rate of hotels rooms is below 50 per cent. They said they are to meet ETC, Punjab in the near future, adding they would oppose the move and urge upon to carry on the existing taxation structure, otherwise, the hotel and restaurant industry will get destroy in Punjab. They said rather, the state government should bring “unorganised” units under the ambit of taxation, if the state government wants to generate more revenue from the hotel and industry segment in Punjab.