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Hoteliers angry over move on licence fee
The state government’s move to not charge the 15% hiked licence fee for restaurants and bars, if the current fee is paid by April 30, has angered the hoteliers.
The state government’s move to not charge the 15% hiked licence fee for restaurants and bars, if the current fee is paid by April 30, has angered the hoteliers. The state had hiked the license fee to Rs 7.96 lakh from Rs 6.93 lakh in March but it notified on April 13 that it will not charge the hiked fee if hoteliers pay Rs 6.93 lakh by April 30. However, hoteliers said that they can’t pay even Rs 6.93 lakh in the present scenario and they will be forced to shut shop.
The Hotel and Restaurant Association of Western India (HRAWI) has called it an insensitive decision. “We are the worst hit sector and instead of giving us some stimulus, the state government hiked the licence fees. How can the State Government even ask for full amount from April 30 when we are closed from almost two months,” rued Gurbaxish Singh Kohli, President, HRAWI.
The Indian Hotels and Restaurant Association (AHAR) has warned that this move will have ramifications on both the unemployment and state revenue. “We will be forced to shut down our restaurants if such a hike is carried out. This will only make our labour jobless and even the state will lose its revenue,” said Shivanand Shetty, President, AHAR.
He said that the hoteliers are facing hard times. “We are still paying salaries to the staff despite having zero revenue and the state expects us to pay such a huge amount as license fees,” he added.
For years, the hoteliers have been complaining of exorbitant license fees saying it was only encouraging the illegal traders to thrive.
Excise officials however defend their stance. “The state is in bad financial state and we are exploring all avenues to raise money. This is an annual hike and in fact seeing the market conditions, we offered them the option to pay in instalments,” said a senior state excise official, who did not want to be named.
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