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Hotel owners' dharna against VAT today

By Our Staff Reporter

KOCHI MARCH 5. Hotel and restaurant owners under the banner of the city-based Kerala Hotel and Restaurant Association will hold a dharna in front of the State Secretariat on March 6, in protest against the introduction of the Value Added Tax regime, imposition of sales tax on food served in restaurants and hotels and the hike in licence fee and electricity charges.

At a press conference here today, leaders of the Association said that the continuing rise in the price of petrol, diesel and cooking gas had affected the fortunes of the hotel and restaurant business.

The association felt that the VAT system would completely destroy the industry and that small hotels and restaurants would be the worst hit by it. They alleged that the new tax regime would not only be a burden on the small businessmen but also pave way for the tax officials to harass business owners.

Licence fee for restaurants has been raised by about 700 per cent, said the association leaders who said that this increase could not be approved of at any cost.

The association reiterated its demand that hotels and restaurants be approved as small business and all the concessions applicable to the small-scale sector be extended to this sector.

The association leaders said that despite a High Court order, the number of `thattukadas' was on the rise. The indifference shown by the authorities towards this should be resisted, the Association leaders said.

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