The State Government’s notification announcing a waiver of 50% on property tax, to be paid by hotels, restaurants, and amusement parks for 2021-22, has been welcomed by local stakeholders in the hospitality sector.
However, they have sought clarity on whether there will be a reimbursement if the owners have already paid the tax. Though the Government’s intent on the waiver was announced in June, it was notified only on Saturday.
“Over 50% of the property owners have already paid the tax and the association has been flooded with calls on the subject of refund,” said Narayana Gowda, president, Mysuru Hotel Owners’ Association.
He said a rebate in property tax was one of their key demands to help tide over the financial distress caused by the pandemic.
Though the Government conceded to the demand, it was notified only on Saturday by when a majority of the stakeholders have already paid the tax.
In the absence of a notification, local bodies, responsible for tax collection, had gone on a drive to shore up their revenue and had forced commercial establishments to pay the tax.
“For those yet to pay the property tax, the waiver will definitely be beneficial. But for those who have already paid, there is no clarity on whether it will be refunded or whether it will be adjusted for next year, and hence we will approach the Government again for a clarification,” said Mr. Narayana Gowda. He pointed out that establishments registered under the Karnataka Tourism Trade (Facilitation and Regulation) Act, are eligible for the rebate and there are at least 300 of them in Mysuru alone.
The demand for rebate was made to help revive the faltering tourism and hospitality sector when the pandemic brought it to a halt resulting in massive job losses.
Meanwhile, the sector is beginning to look up again and the long weekend saw rise in footfall in and around Mysuru. Stakeholders say the peak tourism season before the pandemic used to commence around October and last through January.
“There are indications that the traffic is picking up and people are traveling again as evident in the room bookings and demand for taxis,” said Mr. Narayana Gowda.
The stakeholders aver if the present trend continues and there was no surge in COVID-19 cases, the sector could regain the pre-pandemic level of traffic and business turnover by March 2022.
