the hospitality sector has sought "infrastructure" status ahead of the Union Budget 2024.

In a meeting with Union Finance Minister Nirmala Sitharaman, the Federation of Hotel and Restaurant Association of India (FHRAI) requested infrastructure status for hotels across all categories and convention centers built at a project cost of Rs 10 crore and above to give a fillip to the budget segment in the sector. They also added that the status should be granted irrespective of the city’s population.

“While many state governments have already accorded industry status to hotels, the Central government should give industry status to the sector and set up a corpus fund to incentivize all states to align their policies and offset any losses that may occur due to its implementation,” said Pradeep Shetty, president, FHRAI, as quoted by Business Standard. 

Likewise, Echoing Shetty, KB Kachru, president, of the Hotel Association of India, said, “Along with infrastructure status, we have also recommended allowing hotels a higher rate of depreciation, reducing the rate of income tax, and allowing hotels to carry forward business losses for more years than is currently permissible. Removing petroleum goods and liquor from VAT and Excise regime to GST instead is another change that can help hotels reduce costs and improve revenues.”

(For more news apart from Union Budget 2024, stay tuned to Rozana Spokesman)