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Sunday, May 26, 2024

Hotel sector to get extended relief

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Two special Cabinet Papers will be submitted by Tourism Minister Prasanna Ranatunga for the revision of Licence Levy charged by Municipalities and Provincial Councils from the hotel industry and also to extend the electricity bill concession granted to hotels and tourist accommodations registered with the Sri Lanka Tourism Development Authority (SLTDA).

The Cabinet Paper for the revision of Licence Levy charged by Municipalities and Provincial Council from the hotel industry will be submitted together with the Public Services, Provincial Councils and Local Government Ministry.

Another Cabinet Paper to extend the electricity bill concession granted to hotels and tourists’ accommodations has already been drafted,” the Minister said.

The Municipalities and Provincial Councils have vested powers to charge licence levy based on 1% of turnover of hotels and tourists accommodations. Therefore, a considerable amount of money from the turnover of these institutions has to be paid to the Local Government bodies. He said the hotel industry is already paying colossal sums as rates, taxes and service fees for garbage collection as well. “Considering all these facts, we have decided to give some relief to the hotel industry in this regard,” he added.

The Government is considering extending the electricity bill grace period given to tourist hotels until the end of this year.

The relief period to settle the electricity bill for hotels and tourist accommodations registered with the Sri Lanka Tourism Development Authority (SLTDA) expired on February 28 this year and the hoteliers have requested the Tourism Minister to extend it one last time, insisting that they need more time for recovery due to the impact of the COVID-19 pandemic.

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