Union Budget 2018 expectations – HRAWI

Union Budget 2018 expectations

One of our long standing demands has been for the hospitality sector to be accorded an Infrastructure status and we wish to reiterate it for the upcoming Budget as well. The Association requests the Government to grant soft Loans to hotels with a minimum project cost of INR 25 crore as against the present INR 250 crore. We also request the Government to levy a uniform 12 per cent GST rate irrespective of the room tariffs, for all hotel categories. Presently hotels are required to levy either 0 or 12 or 18 or 28 per cent GST rates based on the declared room tariffs.

We’ve also been requesting the GST Council not to consider the Declared tariff as basis for levying the GST rate but it should be on the basis of Transaction value. We are also hoping that restaurants be given the credit for input services. These are a few of our key and most important expectations from the Govt. in the upcoming Budget.

For India to put itself on the map of the tourism destinations of the world, the tourism sector is in much need of infrastructure development. Promoting and encouraging investments in hospitality by giving the infrastructure status for lower investments for hotels can really provide a boost. The Govt. should also compare the tourism taxes levied by our neighbouring countries with ours and understand that the high tax rate of 28 per cent works against our objective of attracting foreign tourists to the country.

–           Mr. Dilip Datwani, President, Hotel and Restaurant Association of Western India (HRAWI)

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