Hotel & Restaurant Association of Haryana (HRAH) has demanded complete waiver of Luxury Tax (LT) in Haryana. The Association, along with Haryana Chamber of Commerce & Industry, has submitted a memorandum to Bhupinder Singh Hooda, Chief Minister, Haryana for the same.
According to Manbir Choudhary, President, HRAH, the total LT collection in the state is Rs eight crore and a huge amount, approximately Rs 7.85 crore is the share of just one district, Gurgaon. "The LT collection from 19 out of the 20 districts is negligible. Moreover, Rs eight crore, is not a big amount as far as the state is concerned. In order to make the industry competitive, we have asked for a complete waiver of LT from the government," he said.
Haryana government currently charges 10 per cent LT on hotel's room actual tariff, which is above Rs 2,000. When LT was fixed last time, the state had set 10 per cent LT on tariff above Rs 800. The hotel association had taken up the issue with the government and got the minimum tariff for LT raised to Rs 2,000.
Besides, the association also demanded a reduction of VAT on liquor from the current 25 per cent, so that hotels and bars can serve liquor at affordable rates.