28% GST to negatively impact travellers: EIH

“Earlier, the tax rates were around 19 to 20%. After GST, the rates have increased to 28%”, executive vice chairman of EIH Limited S S Mukherjee told reporters after the company’s AGM here.

EIH Limited, which runs the Oberoi chain of hotels, today said that the implementation of GST would increase taxation for customers.

P R S Oberoi, executive chairman, EIH Limited.(Livemint)

“Earlier, the tax rates were around 19 to 20 %. After GST, the rates have increased to 28 %”, executive vice chairman of EIH Limited S S Mukherjee told reporters after the company’s AGM here.

Mukherjee said that this extra expense would work negatively, adding that how much impact it would have on the business has to seen.

On the New Delhi property now closed for renovation, executive chairman of EIH P R S Oberoi said that it would be reopened in January 2018.

The total renovation cost would be Rs 500 crore, Oberoi said, adding that the number of rooms would be lesser as compared to earlier.

Though EIH had suffered revenue loss due to closure, the renovation has to carried out to protect future loss.

Oberoi said a number of managed property would be commissioned during the current fiscal.

Two property in Chandigarh and the UAE had been already commissioned.