Govt of Maharashtra to adjust excess luxury tax for 2004-’05

As a result of consistent lobbying from the Hotel & Restaurant Association of Western India (HRAWI), the Government of Maharashtra has agreed to refund the extra four per cent luxury tax collected from hoteliers for FY 2004-’05. It is estimated that approximately Rs 80 Crore will either be refunded or adjusted against future payments. The Maharashtra cabinet’s latest decision was disclosed by Vivek Nair, Chairman, Convention Organising Committee, amidst thunderous applause from delegates of the 44th Annual Convention of FHRAI at the Shanghai International Convention Centre in China.

Appreciating the Maharashtra Government’s decision to refund the extra four per cent luxury tax charged from hoteliers, Praful Patel, Minister for Civil Aviation (who was also the Chief Guest at FHRAI Annual Convention’s inaugural), opined that the Government should not have collected this extra tax in the first place. Maharashtra’s hoteliers had been paying luxury tax at six per cent till 2005; through a special directive (by the Government) in 2007, the hoteliers were asked to pay arrears of four per cent for FY2004-’05 in 2007.