Government to provide Tax Relief and Rebate in Utility Bills for Hotel Industry:Akram Farid

Islamabad:Continued lockdown due to COVID-19 has put Hotel Industry into total crises. The industry can’t afford any further lockdown. President Hotels and Motels Association M. Akram Farid was speaking during an emergency meeting of Hotels and Motels Association Islamabad, Rawalpindi and Northern Areas. The month of May, being the peak season due to Eid festival, is very crucial for business of hotel industry.Government need to provide tax relief for the survival of Hotel Industry during the prevailing 3rd wave of the disastrous pandemic.This was stated by the President Hotels and Motels Association Islamabad region M Akram Farid.
M Akram Farid said that the Hotel Industry is already in crises since COVID-19 came in. No compensation or subsidy was given to the Hospitality Sector during this period. Hotel Industry needs tax relief and rebate in utility bills, he said.
Haji Gul Afridi, Senior Vice President (SVP) Hotels and Motels Association said that 5 to 6 million people are associated with hotel industry who were badly affected by the pandemic. Hotels are hardly operating on their 30% capacity and jobs of around 70 % people are on stake. Government need to take immediate remedial measures in this regard, he said. The hotel industry accommodated over 15000 overseas Pakistanis in quarantining on their return to the homeland during the 1st pandemic wave last year, the SVP informed.
Tariq Javed Malik, Vice President Hotels and Motels Association said that Hotels are the basic element of the Tourism Industry which is the top priority sector of the present Government. He said that the industry massively contributes to the overall GDP of the country but being ignored by authorities.
Haji Naeem Afzal, Finance Secretary apprised that the Industry is paying 21 % Sales/ Bed tax which is not affordable in the present situation and need to be considerably reduced.
Chaudhry Tasaddiq Hussain said that Sales Tax on Hotels should be reduced to 7.5 % like restaurants. The Bed Tax also need to be reconsidered which is at present 5 % of the room rent, he said. He requested authorities to wave off property tax and water charges for the year 2019-2020.
Chaudhry Riaz, Senior Member Hotels and Motels Association demanded relief in Electricity and Gas Bills.
Yousaf Awan, Senior Joint Secretary said that tourist activity has ceased for May-August Season. The industry needs immediate attention by authorities for its survival, he added.
President Hotels Association M AkramFarid, while summing up the discussion, said thatTourism industry was badly affected by the pandemic and jobs of thousands of men and women associated with this industry were on stake. Contrary to other sectors like Construction, Government did not provide any relief to the Hotel Industry so far.In the prevailing unfavorable economic conditions, the country cannot afford further joblessness. It was extremely important to make the Hotel Industry sustainable, M AkramFarid added.
Representatives from the Hotel Industry urged the Government to take measures for survival of tourism industry, in general, and Hotel Industry in particular. The Association strongly recommended to the Government to provide rebate on fixed charges on Electricity as there was no business and hence no income due to suspended operations. President Hotels and Motels Association demanded to provide relief on Bank Markups. M AkramFarid also demanded to pay salary of Hotel Staff from Government treasury during the prevailing most brutal 3rd wave of the CORONA virus pandemic.