A group of Punjab hoteliers will meet Deputy Chief Minister Sukhbir Singh Badal on 14th of September to express their displeasure over the recent increase in luxury tax on the hospitality sector.

The government of Punjab hiked the luxury tax from 4 per cent to 8 per cent. The tax, which was introduced by the deputy chief minister last year, will now be collected from Rs. 200 onwards.

The luxury tax affects hotels, restaurants and marriage palaces, which are now being asked to start paying additional tax.

General Secretary Amarvir Singh, of the hotel & restaurant association opposed the increase in the tax, saying the tax would finally be passed on to the consumers, and that would further increase inflation.

He claimed that the average occupancy of hotels in Punjab is just 32 per cent, and that they are already paying Rs. 53.3 as tax out of every earning of Rs. 100.

Criticizing the increase in the tax, Mr. Amarvir said, “We already pay house tax, commercial rates of electricity, and 14.3 per cent in VAT, income tax and much more. Out of the earning of Rs 100, we are already giving Rs 53.3 as tax.”

The association is also arguing that Mr. Sukhbir had promised in September last year that VAT would be reduced to 4 per cent, but instead of fulfilling his promise, he added more taxes.