Property tax waiver for hotels and restaurants: Govt.

Property tax waiver for hotels and restaurants: Govt.

On June 7, as a major relief for hoteliers and restaurateurs, the state government announced a complete waiver of property tax for hotels, restaurants, resorts and water parks for the financial year 2021-22. The state also announced that fixed electricity charges have been waived and thus hoteliers, restaurateurs and owners of resorts and water parks will have to pay only electricity charges for what was used.

The announcement brings a significant relief to the hospitality sector, which has been reeling from a severe revenue crunch since the pandemic. Jay Sudhakaran, general manager, Novotel Ahmedabad expressed that “The property tax waiver is welcome after the roller-coaster ride that the industry has been through with the first and second waves of Covid-19 cases. This is a progressive step by the state government.The industry has been feeling forgotten with restrictions on business and hotel staff not being considered frontline worker. This news is a welcome change and will help many who are struggling with their business.” 

Representations regarding the issue were made to the state government by the Hotels and Restaurants’ Association (HRA) and Gujarat Food Entrepreneurs’ Alliance (FEA) in Ahmedabad. Therefore, a meeting was held between HRA representatives and chief minister Vijay Rupani during which the decision was announced.

“Rising rentals, increased operating costs and lack of revenue due to restrictions hurt business of restaurants and hotels in a big way and the decision to waive fixed electricity costs and property tax will ease the financial burden on hoteliers,” said Narendra Somani, president, HRA, Gujarat.


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