FHRAI requests government concessions to save hospitality sector

In a letter to PM Modi, Federation of Hotel & Restaurant Associations of India, (FHRAI), has requested the following concessions for the industry because of the health pandemic. Firstly, a complete GST holiday for 6 months (Central and State Level). Second deferment for fiscal statutory compliance deadlines such as payment of direct or indirect taxes. Thirdly the deferment for repayment of loans, Bank Emi’s etc for a period of 6 months. Fourthly the reduction of bank interest rate by almost 200 basis points with immediate full transmission for working capital. The Hospitality industry is a labour intensive one and is the biggest employment generator of both direct and in direct jobs, and, therefore, the industry has to take care of a large number of employees. On top of that, the hospitality Industry requires a lot of working capital, which is seriously hit by almost 90% of both larger establishments and budget hotels and restaurants, and to pay taxes such as advance tax and GST. Now, in an event of such a pandemic, we have been managing the system with our own cash reserves. In addition to that, a lot of hoteliers have taken loans to construct and run their establishm·ents, and, in such a state, adhering to the on-time payment of EMI’s or the re-payment of loans seems an onerous task.