Odisha hoteliers seek GST holiday, tax waiver due to COVID-19 lockdown

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With tourism and hotel industry taking the brunt of the lockdown, the Hotel Association of India (HAI) has urged Odisha Government to declare complete GST holiday for hotels and waive other taxes for a minimum of six months from March. 

Fearing huge financial loss due to cancellation of rooms, conferences, wedding and banquet bookings during the lockdown, the association requested the Government to propose the Centre for deferment of repayment of loans and bank EMIs for hoteliers for at least six months. It also sought deferment of utility bills and waiver of electricity duty in the State for one year. In a letter to Chief Minister Naveen Patnaik, HAI president Puneet Chhatwal urged him to take necessary steps and announce the relief measures at the earliest. He also requested the Government to waive SGST and property taxes for six months.

“The hotel occupancies have dropped sharply over the last few weeks due to the lockdown. Hospitality establishments have been closed with the only exception being the properties used as quarantine facilities,” he said, adding, “Revenues are at an all-time low and on the verge of completely drying out.” HAI secretary and hotelier JK Mohanty stated that the hotel industry in Odisha is in dire need of support from the Government for its survival and subsequent revival. The hospitality sector is likely to undergo financial stress for another one month after lockdown as there wouldn’t be any immediate bookings and business.

“In such a situation, the RBI also needs to review its decision on deferment of repayment of loans just for three months and take measures either to extend the moratorium or declare three months loan waiver,” he said.

HAI plea

The association has requested the Government to propose the Centre for deferment of repayment of loans and bank EMIs. They have also sought deferment of utility bills and waiver of electricity duty in the State for one year

Read More at: https://www.newindianexpress.com/cities/bhubaneswar/2020/apr/02/odisha-hoteliers-seek-gst-holiday-tax-waiver-due-to-covid-19-lockdown-2124637.html

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