Star hotels assn seeks CM’s help for Input Tax Credit

Announces Rs 50 Lakh donation to ‘Anna Canteen Trust, pledges full support for CII Partnership Summit in Visakhapatnam on Nov 14-15

Vijayawada: The Andhra Pradesh Star Hotels Association (ASHA) president RV Swamy said that the association would extend full cooperation to the upcoming CII Partnership Summit in Visakhapatnam on November 14 and 15. “Land puja has been performed for several new hotel projects in Amaravati and the industry is encouraged by the government’s support for tourism development across Andhra Pradesh.”

Addressing the media after the Association held its first executive committee meeting here with participation of representatives from all districts, on behalf of ASHA Swamy announced Rs 50 lakh donation to the Chief Minister’s Anna Canteen Trust, underscoring the hospitality sector’s commitment to social welfare.

Swamy expressed happiness over the announcement of industry status to the hospitality sector. However, that should be extended not only to the next hotels but also to the existing hotels.

Highlighting industry challenges, Swamy noted that high electricity tariffs are burdening hotels, with rates higher than those in neighboring states. “We will request the Chief Minister to provide relief and bring down power costs,” he said.

ASHA General Secretary Chitturi Satyanarayana Murthy emphasised the need for GST relief and input tax credit restoration, stating that the withdrawal of ITC has raised project costs by 15–18 percent. He also appealed for 50 percent subsidy on municipal taxes and a reduction in electricity charges, which currently reach Rs 12–13 per unit for hotels compared to Rs 5.5–6 for industrial users. He recalled that the tariff in various states was lower.

For instance, the tariff in Gujarat was Rs 5.5 per unit. He underscored the importance of rationalisation of power tariff. He added that lower operating costs would boost hotel expansion and tourism growth in the state.

The association urged the Chief Minister N Chandrababu Naidu, who enjoys strong rapport with the Centre, to seek central support for the hotel and tourism industry in Andhra Pradesh. Gannamaneni Venkata Krishna, vice-president of ASHA, Vadapalli Nageswara Rao, Singu Prashanth and others also participated.

Next Story
Share it