Restaurant, hotel bodies urge Maha govt to roll back 15 pc license fee hike

Hotel and restaurant industry associations on Wednesday urged the Maharashtra government to roll back 15 per cent hike in the renewal of excise license for 2020-21, following the difficult situation of the business in the wake of COVID-19 lockdown.

All three major trade bodies -- Hotel and Restaurant Association of Western India (HRAWI), National Restaurant Association of India (NRAI) and Indian Hotel and Restaurant Association (AHAR) -- in a statement said the move by the government is equivalent to penalising a business for non-timely payment of a fee during the worst crisis.

There is zero cash flow during the lockdown as the industry stands firmly with the nation in its fight against the global pandemic, it added.

"The industry is completely shut, there is no business and we have no income and it could be a long time in future before business gets back to normal. We appeal to the state government as well as the Central government to understand our situation. It is not the time for half measures or 15 per cent cuts, but suspension of all statutory fees," HRAWI President Gurbaxish Singh Kohli said.

He said, the government should proactively take measures to boost business as the hospitality and tourism sector is one of the biggest job generators and contributors to India's GDP.

"This notice has come as a shock to us. The governments at the Center as well as the state have acknowledged the plight of the hospitality industry. We have thrown open our restaurant and hotel kitchens to prepare meals for the needy and are providing close to one lakh meals per day.

"Besides this, our rooms have been thrown open to house doctors and medical workers. Our industry was the first to get hit due to the pandemic and business has come to a complete standstill. In such a situation, instead of lending support, they are expecting us to continue paying statutory levies as before. This will break our backs," Kohli added.

AHAR president Shivanand Shetty said the industry was already going through the recessionary phase from January and the pandemic was the last nail in the coffin.

"An industry in such trying times wants to see that each member is able to restart the business. The challenges faced by a small and medium sized restaurant are huge as on one hand he is facing a huge manpower shortage and on the other hand loss of business due to the lockdown.

"Moreover, payment of salaries, general maintenance and requirements of working capital has further created a hole in his pocket," he said.

The industry needs assistance from the government in terms of relief in payment facilities for license fees and reduction in respect to the number of days lost due to the lockdown, he said.

"This would stimulate the Industry and maintain employment and help the government through taxes, which will directly help in nation building," Shetty added.