Goa Sales Tax Plan For Air- Conditioned Hotels Flayed

The Goa government has come in for criticism for imposing sales tax on hotels, in a new system which classifies hotels on the basis of whether they are air-conditioned or not.

Critics have alleged that small hotels having even a tiny air-conditioned section would be required to pay at par with full-fledged star hotels, in Goa where tourism has grown speedily in pockets, specially along the coastal belt and in local towns.

Many representations have been made by the hotel and other trade associations, and they have asked chief minister Manohar Parrikar to abolish the renewal fee plan.

Hoteliers say the government had assured them that it would make the necessary changes in the monsoon session of the Assembly. Hotels with a turnover of Rs 20 lakh are made to pay sales tax at 10 per cent and surcharge at 1/2 per cent.

Hoteliers said there could be grades or slabs, to cater to hotels of different sizes. Currently, the rates are either 2 per cent for some hotels and 10 per cent for others.