HRANI highly disappointed with Government’s decision to increase annual excise duty fee in Haryana

h&ra17th March 2015, New Delhi: – Hotel & Restaurant Association of Northern India which represents more than 1700 members including hotels, restaurants and associates from North India states has expressed extreme disappointment at the decision of the Government to increase the annual excise fee in the state. The Government of Haryana doubles the amount of money needed by establishments to annually renew their licence. The excise policy of Haryana for the financial year 2015-16 has been announced with increased license fees for Hotels & Restaurants.

District EARLIER PRICE REVISED PRICE
Gurgaon 6 lacs 12.5 lacs
Faridabad 6 lacs 10 lacs
Other Districts 6 lacs 7.5 lacs

This hike is impractical and arbitrary. The hospitality sector will bear the brunt of the reduction in sales and the decision would result in small hotels & restaurants become much more expensive said Mr. Luv Malhotra, President, HRANI.  We urge the State Government to order a rollback added Mr. Malhotra

 

 “On one hand the Central Government has made visa easier for about 40 countries and plans to extend this to other countries and want to promote Tourism by facilitating a Single Window Clearance and simplifying procedures and on the other hand we increase the excise arbitrarily and such a steep hike would make eating out much more expensive after the increase of service tax and excise fee. Business is not as good in Gurgaon or Faridabad as people making these policies think, many establishments will close down with this steep hike. Haryana is the only state that permits AHATAS which is liquor vends to put tables and chairs and allows service of liquor outside the shop at a much lesser fees. These AHATAs are in direct competition with licensed bars and restaurants and unlike them donot have to spend on high rent air conditioned premises nor on decor and interiors, further adding competition to such premises. Haryana is the only state that allows this” said Mr. S.M. Shervani, Immediate Past President, FHRAI

 

The hospitality sector is inherently capital intensive and more vulnerable to global cyclicalty and economic downturns. It is already reeling under pressure of plethora of taxes and multiple approvals, licenses and its fees, increased service tax by centre and now this exorbitant hike by state is aimed at ruining the business of bar and hotel owners in Haryana.

 

The hotels & restaurants are operating at the bare minimum in the flattened economy and any increases would be passed on to consumers.

 

This hike will also act as a major disincentive for the public and visitors to spend money in the wider hospitality sector that remains a crucial part of the economy while simultaneously encouraging consumers to travel to neighbouring NCR to purchase alcohol.

 

The move is “disproportionate, excessive and absolutely contrary to the stated aim of Government to support small businesses”.

 

ABOUT HRANI

  • The Association with its liaison with the local, State & Central Governments & allied agencies, acts as an effective link between the different segments of the tourism industry for achieving common objectives.
  • The Association conducts training programs, activities & recommends implementation of conclusive/ resolutions reached at seminars & conventions to the appropriate authorities.
  • The Association conducts studies and sends out informative circulars on various aspects of the industry. It also comes out with a quarterly newsletter – HRANI Hospitality.
  • The Association provides detailed analysis & guidance in respect of policies and procedures affecting the industry.
  • The Association has a continued dialogue with various authorities for arriving at solutions on various practical problems which surface during the operations of hotels & restaurants.
  • The Association provides platform to its members for interacting with each other during its meets and seminars and thus acts a networking agent.
  • The Association works in tandem with various government departments for approval of schemes and the policies.