NEW DELHI :Federation of Hotel & Restaurant Associations of India (FHRAI) on Sunday said it has submitted a representation to Prime Minister Narendra Modi, finance minister Nirmala Sitharaman, minister of MSME Nitin Gadkari and tourism minister Prahlad Singh Patel requesting for immediate fiscal support to save the hospitality sector from collapse.
NEW DELHI :Federation of Hotel & Restaurant Associations of India (FHRAI) on Sunday said it has submitted a representation to Prime Minister Narendra Modi, finance minister Nirmala Sitharaman, minister of MSME Nitin Gadkari and tourism minister Prahlad Singh Patel requesting for immediate fiscal support to save the hospitality sector from collapse.
“To expect our industry to continue paying off loans without any income or revenue generation is simply unfair. Our right to conduct business was taken away but the right to recover loans from us is being allowed. This is discrimination against our industry. We request the government to offer a sector-specific policy which can mitigate all adverse financial impact, including debt obligations accrued or to be accrued towards banks, financial institutions or any other entities, in view of the current circumstances and its long-term repercussions," said Gurbaxish Singh Kohli, vice president, FHRAI.
“To expect our industry to continue paying off loans without any income or revenue generation is simply unfair. Our right to conduct business was taken away but the right to recover loans from us is being allowed. This is discrimination against our industry. We request the government to offer a sector-specific policy which can mitigate all adverse financial impact, including debt obligations accrued or to be accrued towards banks, financial institutions or any other entities, in view of the current circumstances and its long-term repercussions," said Gurbaxish Singh Kohli, vice president, FHRAI.
FHRAI requested government to make necessary special provisions to waive statutory charges for the hospitality sector, including a complete GST holiday for at least six months, at both the Centre and state level. The industry should be allowed deferment on fiscal statutory compliance deadlines such as payment of direct and indirect taxes and professional tax. Hospitality industry should be offered a waiver of property tax, water charges, electricity charges and excise licence fees for the lockdown period. Hospitality industry employees should get priority vaccination and considered as front line workers.
FHRAI requested government to make necessary special provisions to waive statutory charges for the hospitality sector, including a complete GST holiday for at least six months, at both the Centre and state level. The industry should be allowed deferment on fiscal statutory compliance deadlines such as payment of direct and indirect taxes and professional tax. Hospitality industry should be offered a waiver of property tax, water charges, electricity charges and excise licence fees for the lockdown period. Hospitality industry employees should get priority vaccination and considered as front line workers.
“Along with moratorium extension of three years, the industry will need a complete waiver of interest on the loans from March 2020 till the time that business is normalized. We request the government to announce a special measure for one of the worst affected sectors and bear the interest for a fixed period of time. We urge the government to direct to the RBI to charge the interest on loans at fixed deposit rates plus 2% for all loans taken by the hospitality sector. By doing this, banks will forgo only a fraction of profit which still can be sustained as there are other avenues that banks earn profit from," said Surendra Kumar Jaiswal, vice president, FHRAI.
“Along with moratorium extension of three years, the industry will need a complete waiver of interest on the loans from March 2020 till the time that business is normalized. We request the government to announce a special measure for one of the worst affected sectors and bear the interest for a fixed period of time. We urge the government to direct to the RBI to charge the interest on loans at fixed deposit rates plus 2% for all loans taken by the hospitality sector. By doing this, banks will forgo only a fraction of profit which still can be sustained as there are other avenues that banks earn profit from," said Surendra Kumar Jaiswal, vice president, FHRAI.
The Indian Hotel industry’s total revenue in FY20 stood at ₹1.82 trillion. As per apex body’s estimates, in FY21, approximately 75 % of the industry's revenues got wiped off, which is estimated to be more than ₹1.3 trillion. The total loan outstanding to the hospitality industry currently stands at over ₹60,000 crore.
The Indian Hotel industry’s total revenue in FY20 stood at ₹1.82 trillion. As per apex body’s estimates, in FY21, approximately 75 % of the industry's revenues got wiped off, which is estimated to be more than ₹1.3 trillion. The total loan outstanding to the hospitality industry currently stands at over ₹60,000 crore.