In response to the writ petition filed by Hotel and Restaurant Association of Western India (HRAWI) seeking roll back in the annual excise licence fee hike, the High Court has passed an order allowing restaurants in the state to pay the same at the pre-revised rate by June 1, 2020.
However, restaurants that choose to instead pay the fee in installments will have to pay it with a 15 per cent hike over last year’s amount.
Licence holders have been granted the facility of paying the enhanced excise licence fees in three installments – 25 per cent by June 30, 25 per cent by September 30 and the remaining 50 per cent by December 31, 2020.
However, since restaurants have been totally shut and there is no business, the HRAWI has requested that the government allows establishments two months’ extension for paying each installment.
Gurbaxish Singh Kohli, president, HRAWI, and VP, FHRAI (Federation of Hotel and Restaurant Associations of India), said, “While this is relief, it is only partly good. The High Court had to intervene and save the day for us when ideally the government should have understood the hospitality industry’s predicament. While many of our neighbouring states in the Western region have been kind to its hotel and restaurant industry by proactively ordering relief in the Excise Licence Fee, we have to plead for it.”
“With the first payment installment falling in the 30th of June which is 45 days from today and which is hardly any time left, we are asking that the government at least gives us an extension of two months on this deadline and accordingly for the rest of the installments,” he added.
Last month, HRAWI had appealed to the Maharashtra state government for a roll back of the 15 per cent hike in the excise licence fee for the year 2020-21 last month.
Pradeep Shetty, VP, HRAWI, said, “The Chhattisgarh state government has announced a 25 per cent reduction in the annual licence fees for the year 2020-21 as relief to its hospitality players on account of disruption caused to businesses. Other than Chhattisgarh, Goa, Madhya Pradesh and the Union Territories of Diu-Daman too have offered relief in the Excise Licence Fee in their states to reduce the burden on establishments during the lockdown, without any increase having been suggested earlier.”
“We are willing to pay and are merely asking for extension on the payment installment deadlines,” he added.
“With businesses closed, establishment owners are struggling to support their own families and those of their employees. Hospitality players have been voicing about expenses including property tax, electricity, maintenance, staff welfare and water bills which continue to be levied in a zero revenue environment,” said Kohli.
“On the backdrop that even the Centre has been complacent over providing our industry any kind of support, we are really hopeful that at least our state will do us some justice,” he added.
Last month, in a letter addressed to Chief Minister of Maharashtra Uddhav Thackeray, the HRAWI appealed for:
1. Roll back of the 15 per cent hike in the licence fee and give a reduction of the fees in these times of dire stress for the industry.
2. Pro rata reduction in licence fees charged owing to lockdown and consequent dry days as a measure of support to the hotel and restaurant industry.
3. Withdrawal of the circular dated April 13, 2020, as well as of expectation from hotels and restaurants to pay any fees under present situation whereby lockdown is extended.
4. Not to put conditions to the reliefs granted on deferment of renewal date of staff payments or otherwise.