The Gujarat State government announced a complete relief of property tax for hotels, restaurants, resorts and water parks for the financial year 2021-22 on Monday(7 June), as per a report in The Times of India.
Fixed electricity charges have also been waived. Hoteliers, restaurateurs and owners of resorts and water parks will have to pay charges only for electricity usage.
Hotels and Restaurants’ Association (HRA) and Gujarat Food Entrepreneurs’ Alliance (FEA) welcomed the decision.
“The property tax waiver is welcome after the roller-coaster ride that the industry has been through with the first and second waves of Covid-19 cases. This is a progressive step by the state government. The industry has been feeling forgotten with restrictions on business and hotel staff not being considered frontline workers. This news is a welcome change and will help many who are struggling with their business,” said Jay Sudhakaran, general manager, Novotel Ahmedabad.
The decision was announced after a meeting between HRA representatives and chief minister Vijay Rupani.
“Rising rentals, increased operating costs and lack of revenue due to restrictions hurt business of restaurants and hotels in a big way and the decision to waive fixed electricity costs and property tax will ease the financial burden on hoteliers,” said Narendra Somani, president, HRA, Gujarat.