Budget 2012: Grant infrastructure status to hotels, says FIEO

Last year the government decided to impose service tax on food served at air-conditioned restaurants, and hotel rooms that charged above Rs 1,000.

By Agencies | Updated: Feb 11, 2012, 01.34 PM IST

NEW DELHI: FIEO has demanded that hotels be granted Infrastructure Status. It has also demanded extension of sunset clause u/s 10a/10b units upto 2015 and incentivizing/tax exemption for sale of carbon credits/weighted.

Last year the government decided to impose service tax on food served at air-conditioned restaurants, and hotel rooms that charged above Rs 1,000.

According to estimates of hospitality consulting firm HVS, India's hospitality industry is expected to touch a total room capacity of 1,02,438 by 2015-16, from the current capacity of around 71,530 rooms. In 2010-11, about 9,130 branded rooms were added in the country across segments.

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