Date: 28/05/2014

To,

Shri Saurabhbhai,

Honble Finance Minister, Government of Gujarat,

Sachivalaya,

Gandhinagar.Subjeact : Representation Issues related to Hotel Industry

Respected Shri Saurabhbhai,

We the fraternity of hospitality, on the eve of budget session of Gujarat government for ensuring financial year would like to once again bring before you and the government reflecting certain anxieties that we pass through and suffer for your kind consideration and desire for its legislative initials to settle them, especially in the interest of development and promotion of tourism in the State of Gujarat.

Theses issues are minor for the Government to act in view of total overall economy but will certainly pave a way for promotion of tourism as when the government has determined to put in over Rs.600 Cros for the investment of development of tourism to make it vibrant. The issues are :

1. Gujarat Luxury Tax :

This is small piece indirect tax. We may be permitted to state that the revenue generation out of it to the government exchequer from the point of total revenue could best termed penut to say the least.

The present structure of Luxury tax is misnomer in its practical sense causing condition of mistrust among tourists and visiting guests from other states. Sometimes it leads to undesirable scenario lowing the prestige and image of the establishment and of the State especially when efforts are made to bring tourism to the fore and make to forerunner in developing economy in the State. Hence at the outset we are incline to recommend the government, to do away with it if possible or alternatively to do fine tuning its structure. There are States where no such Law is in force or others are contemplating to do away with it.