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The hotels under the Kerala Hotel and Restaurant Association (KHRA) in the State will down shutters on April 29 in protest against the increase in service tax imposed on fully or partially air-conditioned restaurants.
A decision in this regard has been taken in support of the nationwide protest announced by the Federation of Hotels and Restaurants Association of India.
Jose Mohan, general secretary, KHRA, said in a statement that around one lakh hotels under the banner of the association in Kerala will participate in the strike.
He said that the amendment of service tax brought in the 2013-14 Union Budget makes it applicable not only to AC restaurants but also to the hotels with AC or heating arrangements anywhere in the building.
It applies to the hotels which use heating arrangements or AC at least one day in a year. This virtually means that those who have food from non-AC restaurants also have to pay five per cent service tax.
The association has also opposed certain provisions in the Food Safety and Standards Act (FSSA), 2011. It reiterated that they are not against FSSA but certain drawbacks in the Act removed as it would not be possible to follow some provisions.
A meeting of the hotel associations in Mumbai has decided to submit a memorandum to the Prime Minister in this regard, he added.
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