HRA seeks exemption from Luxury Tax, VAT

The Hotel and Restaurant Association has appealed to the Government of Maharashtra to exempt its members from Luxury Tax, VAT and has also requested for a cut in electricity charges for at least two years in the forthcoming budget. This appeal is due to the hospitality industry being badly affected on account of recession and 26/11 terror attacks. “The government aid will help the industry to cater to its clientele. The industry has been badly hit after the Mumbai terror attacks,” said S P Jain, president, Hotel and Restaurant Association (western region).

Meanwhile, Indian Hotels Company Ltd (IHCL), a Tata group company that runs the Taj Hotels Resorts and Palaces chain of hotels, reported a 38 per cent drop in net profit at Rs 84 crore for the quarter which ended on December 31, 2008, as compared to Rs 135 crore in the corresponding period in 2007. The company said that it was substantially affected by the terror attacks that occurred in November 2008; its property, Taj Mahal Palace & Tower, Mumbai generally contributes a considerable amount to the company's total revenue.