Hoteliers from Maharashtra to boycott awards over new service tax

FM's refusal to revoke 5% service tax on rooms priced more than Rs 1,000, hotels irks the industry

Travel News
Travel News

Hoteliers across Maharashtra plan to boycott any tourism awards they receive, if the government fails to withdraw the recent tax structure imposed on the hospitality industry by the Union Budget 2010-11.

As per a report in Mid-day, in a convention organised by the Hotel and Restaurant Association (Western India) at Lavasa on April 9, hoteliers across the state decided to boycott the awards after their attempts to convince Finance Minister Pranab Mukherjee to revoke the service tax of five per cent on hotel accommodation costing more than Rs 1,000 came to naught.

Recently, the HRA-WI President Kamlesh Barot had met the FM in Delhi to request him to withdraw the tax, citing that its introduction of such a tax would be a retrograde step and would repel foreign tourists from the country.

"I had made an appeal to the ministry to withdraw the tax which is going to take away tourists. However, the FM refused to do so. We might have to take this step if our demands are not met. We will speak to travel associations and take the decision accordingly," he said.

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