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Hotels to close on 30th May as a protest against GST increase
Posted on: 23/May/2017 11:15:33 AM
The Tamil Nadu Hotel Owners Association has announced that the hotels in Tamil Nadu will remain closed on 30th May as a mark of protest against increased GST (Goods and Services Tax) imposed by the central government.
The Secretary of the Tamil Nadu Hotel Owners Association explained that up to now, 0.5 percent tax was levied on the hotels earning less than Rs. 50 Lakhs per year. Now, with the new GST system, this tax has been increased from 0.5 percent to 5 percent.
The tax for the hotels earning more than Rs. 50 Lakhs per year was 2 percent till now. However, this has now been increased with the new GST by 6 times and it is 12 percent.
Until now, the air-conditioned hotels paid a tax of 8 percent, This has now been increased to 18 percent. This steep rise will put the public to great hardship.
Even as the association made demands that the tax should not be so high, and a petition was given, no action/response has been taken.
So, as a protest against this steep increase as per new GST. The hotels will remain closed on 30th May throughout Tamil Nadu.
Around 1.5 lakhs hotel owners will be participating in the protest throughout Tamil Nadu.
The tax should not be more than 5 percent for all ordinary hotels. Air-conditioned hotel tax must not be more than 12 percent. So, the secretary of the Tamil Nadu Hotel Owners Association requested that these fair demand must be considered and the newly imposed excess taxes must be withdrawn.
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