CCIK demands GST relaxation, industry power tariff for hospitality sector

Associated Chamber of Commerce and Industries-Kashmir (CCIK) has demanded relaxation of GST on hotel industry and power tariff at par with the other industrial units.

Associated Chamber of Commerce and Industries-Kashmir (CCIK)in a statement said that Kashmir has been facing commercial crisis sinceSeptember 2014 floods, which has adversely affected the Tourism and Hospitalitysector primarily.

   

“Kashmir used to be exempted from the Taxes, however, sincethe extension of GST the overall tourism Industry has been hit by the rise incosts and prices at hotels, guesthouses, houseboats, restaurants and even thetour operator services. Even after several promises made by Govt. and theconcerned at State level, we have not been given any relaxation of tax to helpand promote the tourism sector in these most exasperating times where thebusiness has gone down highly and very badly,” read the statement, adding, thisis true about the Handicrafts sector as well, which is mainly a cottageindustry run by poor artisans.

The survival of the units and the business establishmentprovided to local youth has become difficult due to continuous financiallosses. In such circumstances, the financial condition of one is deteriorated,the maintenance costs of running a business unit is high, retaining theemployees at decent salaries with benefits is impossible and keeping thestandards for the customers is in danger. While it is impossible to survive inpresent conditions, it is absolutely unbearable to keep the commitments ofrepayment of bank loans with increasing interests from various financialinstitutions, the statement said.

On top of this power tariffs are very high. Whereas tourismhas been announced to avail industrial benefits, these are not forth coming tothis industry yet, it added.

“We would also like to draw the attention of the governmentthat way back in 2004 the then Prime Minister of India, Atal Bihari Vajpayee,considered room wise financial assistance to various categories of Hotels aslisted in Tourism Department for revival and refurbishment of the properties.And he did it. On these lines we submit that similar kind of approach needs tobe adopted now in the way of cash assistance to the various categories ofaccommodation for each room as was done in 2004,” read the statement.

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