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- By Parinda News Bureau, April 17, 2006, 10:57 IST
Mumbai hoteliers have threatened to go on an indefinite strike from May 1, if the government fails to meet their demand of bringing down value added tax (VAT) rates from the current 12.5 per cent to four per cent.
The Indian Hotel and Restaurant Association of Maharashtra (AHAR), which represents 35,000 eating joints of the state, has called for an indefinite strike.
Agitated over the government's inaction, AHAR President Chandrahas Shetty said: "Minister Jayant Patil and senior officers of the state granted us a patient hearing and promised immediate action in December 2005. However, till date our file has not moved for required action."
"Our longstanding demand for affordable VAT rate has been pending for more than a year now," he added.
Shetty said that the VAT on food served by five star hotels has been cut from 23 per cent to 12.5 per cent and it is generally believed that this loss in revenue is being recovered from the tax on restaurants and lunch homes.
AHAR will hold a rally on April 19 at Azad Maidan with over 10,000 members from Maharashtra, in order to appeal the Chief Minister to intervene and set things right by month end. If, however, their demand remains unfulfilled then the restaurants will go on indefinite strike from the 'Maharashtra Day'.
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