Maharashtra hotels demand a 50 percent reduction in excise licence fees, citing disruptions in operations for 11 of the 12 months in FY 2021-22.

Maharashtras hospitality industry has seen a revenue decrease of around Rs.5,000 cr per month since the end of the shutdown period. In the last 24 months, around 3,000 hotels and 60,000 restaurants have permanently closed down.

MUMBAI: While expressing gratitude to the Maharashtra government for giving 7.5% exemption in excise taxes in the fiscal 2022-23, the state's hospitality sector has requested that the chief minister, Uddhav Thackeray, waive 50% fees for the current fiscal 2021-22, since hoteliers reported that the actual operating days at 100% capacity were only 28 out of 365 days.In the subsequent waves of the Pandemic, almost 30% of Hotels and Restaurants have closed permanently, as it is a well-known fact.Several lakhs of workers and their families were displaced and lost their jobs.Despite this deplorable situation, no compensation has been given to this sector, according to a letter sent to the CM by the Hotels and Restaurants Association of Western India (HRAWI).

one month out of 12) between April 2021 and March 2022.Today, the remaining 22 districts in the state operate with restrictions.Maharashtra has 10,500 hotels and 210,000 restaurants, and in the last 24 months, around 3,000 hotels and 60,000 restaurants have permanently closed down.Around 50 lakh workers are currently employed in the sector, approximately 40% of whom are directly employed in the state.

All of this was due to the strictness of the industry's restrictions.According to Sherry Bhatia, President of HRAWI, it is only fair that the Government waives off 50% of the Excise Licence Fee for the current year.We applaud the government for reducing the fee for the upcoming financial year, but the industry has suffered major losses in the last two years.The reduction is certainly welcome, but the business needs a lot more than a 7.5 per cent reduction on the previously announced fee.

The sector has plowed in significant funds to reopen and rebuild operations, and it is continuing to search for workers.In addition, owners are in a very difficult situation as a result of an increase in the petroleum price as well as a general increase in all raw materials of up to 40%.We also asked the government to either offer a uniform waiver of 50% or charge license fees for the FY 2021-22, depending on the period during which the establishment was permitted to operate, Shetty said.Restaurants continued to pay for salaries, property taxes, statutory fees, electricity, water, and other expenses over the past two years, despite no business being offered due to restrictions.