I am delighted to report that the Government of Maharashtra has accepted the request made by the Association, in respect of Luxury Tax on Hotel rooms. Effective 01st May 2003 till 30th April 2004, Hotels charging room rate at Rs.1200/- and above per day, will be liable to charge a luxury tax at 6% instead of 10%. I am sure, this will keep our tariffs competitive and will lead to a higher room revenue being derived through additional flow of tourists into Maharashtra.

After the reduction of the State Excise Fee from about 350% to 50%, this is the second magnanimous gesture shown by the Maharashtra Government towards, tourism development and it augurs well for our Industry as it is regarded as a “priority” Industry by it. Both the Chief Minister and the Finance Minister are to be thanked for the encouragement and support given to Tourism in the State.

You will also be pleased to note, the announcement of the new Gujarat Tourism Policy, valid for 2003-2010, reflects a number of initiatives. The salient features, are reproduced in this bulletin. The Hospitality Industry, is now awaiting specific details of the policy initiatives, being taken by the State Government, specially by way of incentives. Your Association, is in constant dialogue with the State Government, to achieve a balanced tax structure for the Hospitality Industry and to enable it to contribute to the growth of Gujarat, as a prime tourist destination of the coming decade. In order to achieve this laudable goal, it is necessary that the Gujarat Government acts on the memorandum given to it with regard to rationalizing the various cumbersome procedures present especially with regard to the prohibition policy in the State. It is our sincere hope that some pragmatic decisions are taken soon in this respect without which no new Tourism Policy or fiscal incentives would bear any fruitful result. As the run-up to the next Union Budget & the State Budget has already begun, I would like you to write to me if there are any suggestions you may have to rationalize the taxes or to make it more compliant. I look forward to receiving your valued suggestions in this regard.

After the launching of the membership drive, I am happy to inform you that a definite trend of more Hotels & Restaurants joining as members of the Association have taken place. I would like to urge each one of you to convince other leading Hotels & Restaurants in your city, who are not yet members, to join as members of the Association, so that together, we will be a more stronger body and would be listened to in a more convincing manner.

A very useful tourist guide, YATRA, is being brought out in Maharashtra and I once again appeal to all members to support this initiative. The details of the same were earlier forwarded to all the members and I look forward to your spontaneous & quick response.

In respect of service tax, as is reported elsewhere, it has been clarified by the Service Tax Commissioner, that Restaurants are not subject to service tax, except when there is a specific banquet function held in a Restaurant.