Hoteliers seek tax exemption for expansion in remote areas

Hoteliers have demanded construction of adequate infrastructures so as to be able to attract more tourists into the country.

Forwarding its suggestions on the new budget to the Ministry of Finance (MoF), the Hotel Association Nepal (HAN), has demanded allocation of adequate funds for the proposed international airports, including Gautam Buddha Airport in Bhairahawa and Pokhara International Airport in Kaski.

Similarly, hoteliers also have stressed the need for upgrading Tribhuvan International Airport (TIA) to increase the number of international flights. They also recommended reducing landing and parking charges at TIA.

 "Landing and parking charge at TIA is higher and this has been discouraging international airlines to fly via TIA," Binayak Shah, General Secretary of the HAN told Republica.

Hoteliers have also urged the government to provide concessions in electricity tariffs and 24-hour electricity supply to big hotels. They have also demanded that the government provide them incentives on par with exporters.

HAN has said that the hotel industry deserves incentives as it also earns foreign currency. The government has been providing 2 percent of their total export earnings to exporters.

Likewise, HAN has also sought duty exemption on at least four vehicles imported by the hotels to transport tourists. Hotels have been provided five percent tax exemption on the import of necessary interiors once in five years. Hoteliers, however, have demanded that the same should be provided once every three years.

They have also sought five percent value added tax (VAT) refund in agriculture products consumed by the hotels.

In addition, HAN has urged the government to implement its suggestions and to renew hotel licenses in accordance with the new standards set by the Ministry of Tourism in October 2013.

The hoteliers have also sought amendment to some provisions mentioned in the Industrial Enterprises Act-1992 and House and Land Tax-1962. They have also urged the government bring the hotel industry under the essential service act and keep it free from strikes.

source: republica,14 june 2014