Mumbai hotels on day-long strike

Mumbai, Apr 19 (UNI) About 12,000 hotels across the metropolis today observed a one-day strike in protest against Value Added Tax (VAT) regime and other direct taxes, causing severe inconvenience to the public, particularly officegoers.

While the strike impacted a revenue loss to the tune of Rs 70 crore according to the Indian Hotel and Restaurant Association AHAR), it forced the people to look for alternate sources for eating. On the other hand, it gave a boost to the sales of roadside eating stalls.

Speaking to UNI, Santosh Shetty, Treasurer of the Indian Hotel&Restaurant Association (AHAR) said, ''that there is an overwelming response from the hotel industry. The goverment exchequer will loose Rs 70 crore as a result of the strike called by Grade I, II&III hotel owners''.

He said Sales Tax Commissioner B C Khatua had expressed his helpless in addressing the issue, citing technical grounds for continuation of present tax structure.

Meanwhile, the Association members are expected to submit a fresh petition to Chief Minister Vilasrao Deshmukh seeking his intervention to solve the crisis.

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