The hotels and restaurants are closed today across Gujarat and Goa. All the staff members belonging to the AC restaurants and hotels are on one day strike to oppose the foisting of 4.95% service tax by the central government on air-conditioned restaurants.

Restaurants in Goa

Mr. Gaurish Dhond, the President of the Goa hotel and restaurant association said that,

“The decision was taken in response to a call given by the Indian hotel and restaurants’ association, western region, Mumbai”.

The implementation of the new tax is adversely affecting their business, so due to this The Gujarat Rajya Hotel Federation has declared a strike. Today, all the restaurants in Gujarat are closed while the stars hotels keep their accommodation open only for their room guests. Because, of the one day strike, the firms expect around a loss of INR 10-15 crore of business. In South Gujarat, including Surat, NH-8 and state highway, around 500 hotels have closed their doors today.

Mr. Dhond told that,

“We are already paying VAT and to add to the burden, service tax has been introduced for even partly air-conditioned restaurants. We urge all restaurant owners to support the cause by observing a one-day band on Monday”.

Restaurant in Gujurat

The members of South Gujarat Hotel and Restaurants Association (SHARA) organized a strike near the Mahatma Gandhi statue in Chowk Bazaar. Mr. Arun Shetty, the President of SHARA, said,

“The tax will also be levied on parcels even though customers may not be using an air-conditioned facility at a hotel or restaurant. Ultimately, the increased tax burden will drive away customers from restaurants”.

The imposition of the tax will call for a hike in the menu prices and other facilities that are available in the restaurants.