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Karnataka government announces 50% property tax waiver for hospitality sector

Industry welcomes the rehabilitation package; The state incurred losses to the tune of Rs 75,000 crore in revenues during the last 15 months on account of COVID-19

June 25, 2021 / 08:38 PM IST
International departure gate in Kempegowda International airport at night in Bangalore (Source: ShutterStock)

International departure gate in Kempegowda International airport at night in Bangalore (Source: ShutterStock)

In an attempt to support the tourism sector that has been impacted by COVID-19, the Karnataka government on June 25 decided to halve the property tax for hotels, resorts, restaurants and entertainment parks for the current financial year.

The property tax will be halved for hotels, resorts, restaurants and entertainment parks for the current financial year, according to the government statement.

Read: Will COVID second wave force RBI to announce loan moratorium again?

Fixed charges for electricity bills for the months of April, May and June too will be waived off for them, it said.

Excise license fees and other such charges, commercial enterprises have been given an option to pay only half of the amount for now and the rest can be paid before the end of the calendar year.  The state government has also decided to provide a one-time relief of Rs 5000 to tourist guides registered with the tourism department, it said.

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S Mahalingaiah, secretary, Karnataka Tourism Society, told Moneycontrol that the rehabilitation package for the tourism sector is much needed and will help it restart business post the pandemic. Several measures have been announced to help hoteliers conserve cashflows and pay the staff.

“We are also in talks with the government for more concessions. We have also asked for working capital support for travel agents and for direct transfer of financial benefit to all travel agents and tour operating staff,” he said.

In the last 15 months, the state exchequer has incurred losses of over Rs 75000 crore in revenues from tourism. Tourism forms 14.85% of GDP contribution in the state and as many as 35 lakh are employed directly in the sector, he added.
Moneycontrol News
first published: Jun 25, 2021 08:38 pm

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