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LMC to bring hostels, libraries, B&B service providers under tax net to augment income
A number of houses in Gomti Nagar, Gomti Nagar Extension and Aliganj areas of Lucknow are offering “Breakfast and Bed” services
In a bid to augment its earnings, the Lucknow Municipal Corporation (LMC) has decided to impose commercial tax on people running hostels, kitchen services, food supply chains, libraries and godowns etc in the state capital. The LMC House unanimously passed a proposal in this regard on Thursday.
“There are more than 250 private hostels in Narhi, Jiamau, Balu Adda, Gomti Nagar, Aliganj in other parts of the city. The LMC will find out how many hostels are operating. They will have to pay commercial tax now. There are more than 50 food packing centres and mess and now they will also be brought under the commercial tax net,” said municipal commissioner Inderjeet Singh.
Besides, “Breakfast and Bed” (B&B) facilities which people are offering in their homes and earning through it would also be taxed commercially. It is expected that over 200 B&B facilities are operating in the state capital. It is a unique facility for travellers who want to stay at a place where they get a homely feel.
“A number of houses in Gomti Nagar, Gomti Nagar Extension and Aliganj areas are offering B&B services to travellers. The houses provide stay to customers without turning them into hotels. They earn handsomely but without getting into the notice of authorities,” Singh said.
“The LMC will also give its land and buildings on rent or on lease after getting an approval from the state government. The LMC has a huge land bank which can be used to increase income. The civic body can develop the land bank on PPP model,” he added. The civic commissioner further said the change in the working of the LMC would be visible soon as it will become more professional in taxation and utilisation of properties.
