Enhance ESI subsidy of wages, hotel owners urge Centre

‘Scheme has provision for 25% of wages and it should be raised to 50%’

May 02, 2020 06:45 pm | Updated 07:48 pm IST - CHENNAI

The Tamil Nadu Hotels’ Association has sought several relief measures as it expects that it will two years before the restaurants recover from the economic impact of lockdown.

The Tamil Nadu Hotels’ Association has sought several relief measures as it expects that it will two years before the restaurants recover from the economic impact of lockdown.

The Tamil Nadu Hotels Association (TNHA) has urged the Centre to subsidise wages of employees through the Atal Beemit Vyakthi Kalyan Yojana Scheme of the Employees State Insurance Act.

In a letter to the Centre and State governments, association president M. Venkadasubbu said that since it would take at least a year for the travel and tourism industry to get back on its feet, this was pertinent. “The scheme has a provision to subsidise 25% of wages. We are asking that it be enhanced so that both employees and employers do not suffer,” he said.

There were around 50,000 restaurants and hotels in the State employing over one lakh people and indirect employment to four lakh people.

Association secretary R. Srinivasan said that bank liabilities, including repayment of EMI and interest, should be deferred by 12 months with the extended period to be added to the overall tenure of the loans. “We are also asking that GST on cooking gas refills supplied to stand alone restaurants be charged at 5%. They should not be treated on a par with large hotels,” he said.

The association has sought waiver of licence fees for all government licenses for one year; GST holiday for standalone restaurants: rentals to all government buildings, including municipal buildings, property taxes and licences such as exercise fees be suspended for one year and utility charges such as electricity tariff be charged on actuals.

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