Worst hit, hospitality industry asks tax exemption

New Delhi: The hospitality industry is one to be suffering from both the slowdown in growth and the fall out from the Mumbai terror attacks and it wants government help.

The main demand is for tax exemption; the Hotel and Restaurant Association, Western India, wants a tax holiday for two years.

This includes four per cent to 10 per cent luxury tax exemption on room tariffs and 12.5 per cent VAT exemption on food and beverages also the 20 per cent VAT exemption on alcohol.

These exemptions they say will improve revenues in hotels across board have gone down by 25 to 35 per cent.