AHMEDABAD: In a major relief for hoteliers and restaurateurs, the state government on Monday announced a complete exemption from property tax for hotels, restaurants, resorts and water parks for the 2021-22 fiscal year. The state also announced that fixed electricity charges have been removed and that hoteliers, restaurateurs and owners of resorts and water parks will therefore only pay electricity costs for what has been used.
The move brings massive relief to the hospitality industry which has been reeling from a severe income crisis since the pandemic. “The property tax exemption is welcome after the roller coaster the industry went through with the first and second waves of Covid-19 cases. This is a progressive stage of state government.

The industry has felt forgotten with the restrictions placed on staff in companies and hotels who are not considered frontline workers. This news is a welcome change and will help many people struggling with their business, ”said Jay Sudhakaran, General Manager of Novotel Ahmedabad.
Representations on the issue have been made to the state government by the Hotels and Restaurants Association (HRA) and the Gujarat Food Entrepreneurs Alliance (FEA) in Ahmedabad.
A meeting was held between HRA officials and Chief Minister Vijay Rupani on Monday afternoon, after which the decision was announced.
“Rising rents, rising operating costs and lack of income due to restrictions are severely hampering restaurant and hotel operations and the decision to forgo fixed electricity costs and property tax will ease the financial burden on hoteliers, “said Narendra Somani, president, HRA, Gujarat.



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