HYDERABAD: The Telangana State Bar and Restaurant Association has sought the immediate withdrawal of the newly proposed privilege tax. They said when licence fees, taxes and operating expenses have already increased substantially, imposing another additional tax will cause severe financial losses to business owners.
In a press statement issued here, the association said: “An additional financial burden of 8% to 16% will be imposed on bars, depending on the existing bar excise tax category. If this is passed on to customers in the form of increased prices, it will place an additional financial burden on consumers. This could further damage the bar and restaurant business and may drive customers towards illegally operated permit rooms.”
Speaking to TNIE, Telangana State Bar and Restaurant Association president Damodara Goud sought removal of belt shops operating in areas where bars and restaurants are located. “If there are more taxes on bars, it will lead to increase in belt shops and illegal liquor sales. That will in turn affect the government’s income,” he said.
“We want the government to control how permit rooms are run. Allowing them to serve food and provide TV and other facilities has affected our business. We are only seeking the government check if the permit rooms are being run as per rules,” he said, adding that they are losing business and income during the bandh period.
In protest against the state government’s decision to increase the privilege fee, raise the bar slab from 8% to 20% and licence fee from `40 lakh to `44 lakh, the association is currently observing a bandh.
There are 1,185 bars in the state, half of which are in Hyderabad.