Government extends tax rebate for hotels until July 31
The Union Ministry of Finance has announced it decision on Thursday to extend the tax rebate for hotels from March 31 to July 31, 2010 to boost the growth in the hospitality sector.
The government is trying to boost the hotel industry to reach the capacity required for the upcoming commonwealth games. Around 20 new hotels with the combined capacity of 2,000 rooms will benefit from the extension. Around
30,000 rooms are being prepared for the event this year.
The tourism ministry was worried over the reports that suggested that hotels will not able to meet the capacity during the games. Hence it decided to write to the finance ministry in February requesting the extension of tax holiday scheme for the sector.
The union budget had extended the five-year tax holiday for 2, 3 and 4-star hotels along with convention centres in Delhi and the districts of Faridabad, Gurgaon, Gautam Budh Nagar (Noida) and Ghaziabad.
The tourism minister has said that the government has created economic environment for the growth of the industry in the area. The scheme was available during the period April 1, 2007 to March 31, 2010.
The move is aimed at the completion of the games hotel project which was slowed due to the global economic slowdown.
