Hotel Industry is a significant contributor to national economy as it provides employment to thousands and earns millions in foreign currency despite step-motherly treatment extended to it.
Almost all Asian countries have abolished various taxes such as expenditure tax, service tax and luxury tax besides granting full industry status to hotel industry for concession financing in order to promote tourism.
But in Pakistan, the already bleeding hotel industry has been hit by a variety of over 20 different types of taxes like sales tax, bed tax, permit fee, vend fee, property tax, and others.
The hotel association, through its applied title 'Save the Hotel Industry from dying', has approached the Finance Minister with the request that tax structure, which is presently being levied on all hotel services, be rationalised and utility rates be reduced.
It has further requested that hotel industry's industrial status be upgraded from its present 'C' to 'A' category. Further, Nepra, Wapda and KESC refuse to acknowledge hotels as industry and do not apply industrial tariff for electricity. This facility be extended to hotel industry.
Time has come for the government to introduce 'One-Window' concept, which will provide relief to the industrialists and would also attract foreign investors.