Service tax hike shocks hoteliers

Tribune News Service

Mussoorie, February 28

The proposed increase in service tax from 12.36 per cent to 14 per cent in the Union Budget has deeply disappointed hoteliers of the state who were in fact demanding exemption from service tax.

Sandeep Sahni, president of the Uttarakhand Hotel and Restaurant Association, at a press conference held here today said the hotel industry had suffered huge losses due to the natural disaster of 2013 and was expecting some relief in form of exemption from service tax for next three years as well as waiver of interest on loans taken by them. “It is ridiculous that entrepreneurs, who had taken loans to build and renovate their hotels after the natural disaster of 2013, are made to repay without any business. The interest on loans that is getting compounded every month, as business houses are unable to repay loans, is adding to their problems of hoteliers and other business houses,” added Sahni.

Deepak Gupta, secretary of the Uttarakhand Hotel and Restaurant Association, said people had voted for the Narendra Modi government in a hope of “Acchey din” but for the hoteliers in the state the Budget had instead brought worse days.

Sahni said they would continue to press for their justified demands. He requested the state government to take up the case of the hotel industry with the Centre, as a large number of people in Uttarakhand were dependent on tourism for their livelihood. Mobile phone users are also disappointed at the increase in service tax. They said the prices of mobile phone recharge services would go up due to the proposed increase in service tax, financially burdening hapless consumers.

Saatish Dhaundiyal said the Budget was pro-rich and corporate houses and there was nothing in it for poor and common people. Farmers too were feeling let down.

Mahesh Chandra, a ward member of the Landour Cantonment Board, said the salaried class that was hoping for more tax exemptions and easy education loans was also a disappointed lot.

Meanwhile, lcoal BJP leaders termed the Budget as progressive and poor friendly. They hailed the decision of providing insurance cover to poor people for Rs 12 every year and relief to farmers.

Vijay Ramola, co-convener of the state BJP Human Rights Cell, said it was a progressive Budget that takes care of each section of society. He hailed the announcement regarding the introduction of goods and service tax (GST) from April 1 next year. He said economic growth that was stalled during the UPA II regime would now pick up under the NDA government.