Delhi restaurants, hotels and pubs get a tax break

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The Delhi government in India has allowed a waiver of the excise license fee for pubs, restaurants, and hotels serving liquor, having been put into lockdown due to COVID-19 from April 16 to June 20, 2021.

  1. This excise tax waiver is expected to last for around 2 months.
  2. Also extended is the payment date of excise fees for the second quarter from June 30, 2021, which has now been pushed back to July 31, 2021.
  3. The excise tax waiver order was issued by Sh. Anand Kumar Tiwari, Dy. Commissioner (Excise).

The Hotel and Restaurant Association of Northern India (HRANI) had made representations to the Excise Department and Deputy Chief Minister Sh. Manish Sisodia in this regard.

A hotel, bar, or restaurant is liable for paying the license fee in advance before the start of the financial year according to the nature of the permit, depending on the seating capacity; fees vary according to the type of license.

โ€œThe Hotel and Restaurant Association of Northern India has made similar representations in all the 10 states and UTs that have levied the excise license fee,โ€ said HRANI President Surendra Kumar Jaiswal.

He added that if the business is non-operational, the fee should not be levied. “Moreover, businesses were shut because the government had asked them to. We are glad that Delhi has agreed, but we will continue to plead with the remaining states for the waiver.”

โ€œMany restaurants in the city have not resumed the dine-in facility until now, fearing low footfall and increased losses. Some restaurants and bars have already closed permanently due to the ongoing crisis,โ€ said Garish Oberoi, Chairman of the Delhi State Committee and Treasurer for HRANI.

While thanking the Government of Delhi for granting the relief, Secretary General Renu Thapliyal requested for issuance of an order on to release and de-link hotels and banquets and make an extension of hospitals due to the second wave and surge in cases. She added that the members are always ready to support the Government, but after the decline in cases, these units should be released and allowed for normal operations as others in the capital.

Despite giving any relief, there is a delay in the issuance of an order for de-linking which is discriminatory. HRANI has submitted multiple representations and is hopeful that these units will be released soon by the Delhi Government.

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Anil Mathur - eTN India

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