Hospitality industry appeals review of 10% VAT

There are 20 star hotels in Puducherry and Karaikal regions with a strength of 2,300 rooms.

Puducherry: South India Hotels and Restaurants Association on Saturday appealed to Puducherry Government to review the ten percent VAT imposed on cooked food in the union territory, saying it has affected the hospitality industry.

The introduction of a ten per cent VAT on cooked food in January this year had led to a considerable fall in flow of tourists hitting the hotels, association spokesman T.Natarajan told presspersons here.

He sought tax concessions to the hotels and restaurants and a separate legislation to protect the hotel sector.

There were 20 star hotels in Puducherry and Karaikal regions with a strength of 2,300 rooms. The association also wanted road, rail and air connectivity to Puducherry from different pockets to attract tourists.

PTI