The hospitality industry in Gujarat has come up with fresh set of demands even as the government expedites the process of launching the state tourism policy soon. Business Standard reported that the hospitality players had been seeking relief measures which could be included in the upcoming policy.”We have suggested several measures that could be incorporated in the draft policy that is expected to come up soon,” said Ashwin Gandhi, convenor – tourism, Confederation of Indian Industry (CII) and member of Gujarat Rajya Hotel Federation.The industry wants electricity duty for hospitality industry to be cut from the current 25% to 10%.Among fuels, the industry has sought total exemption of value added tax (VAT) on natural gas consumed. Currently, hospitality players have to pay about 15% VAT on natural gas consumed.The report said the state government had already taken up some of the suggestions made by the industry.”We have been taking measures for the benefit of the hospitality industry in a bid to boost tourism. For instance, we have allowed additional 25% floor space index (FSI) to the industry as demanded earlier. However, it is yet to be seen what measures can be incorporated into the policy,” Jaynarayan Vyas, state minister for tourism was quoted saying.Gandhi had added that these measures should also be extended to restaurants who form part of the industry.
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