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BSRBA Flays Annual Licence Fee Hike
March 14, 2013

BSRBA Flays Annual Licence Fee Hike


http://www.hospitalitybizindia.com/detailNews.aspx?aid=16173&sid=1

14 March  2013

Mumbai: Bihar State Restaurant and Bar Association (BSRBA) is not happy with the state government's decision to increase the annual licence hike fee more than three times. The members are of the view that the hike will have a very adverse impact on their day-to-day business, according to a TOI report.

The state government, during its 2013-14 budget, has increased the annual licence fee for restaurants and bars falling under municipal corporations to Rs 16 lakh from Rs 5 lakh and for those falling under nagar parishads, it has been increased to Rs 12 lakh from the existing Rs four lakh. The restaurants and bars falling under nagar panchayats will now have to pay Rs ten lakh as annual fee while others will have to pay Rs eight lakh instead of the existing Rs three lakh.

"This is ridiculous that no one from the association were consulted before the hike. How can the state government be so insensitive? It is an anarchy-like situation in the state," said PK Choudhary, President, BSRBA.

Subodh Kumar, Association Secretary said restaurants and bars, and foreign liquor shops both pay excise duty and licence fee. "But why this discrimination that our licence fee increased three times and liquor shops fee were kept untouched. We have to pay increased licence fee besides excise duty while foreign liquor shops have to pay only increased excise duty. This would not only hamper our business but also the tourism sector," he added.

All member of the association have appealed to the state government to roll back the hike as thousands of families depend on this business. "If government does not roll back the hike, many of us will surrender our licence as it is already going to be a no profit business for us from now onwards," said Govind Kumar Gupta, Treasurer, BSRBA.