TEAM HERALD
teamherald@herald-goa.com
PANJIM: Your pav bhaji and chai may cost you dear if served in air-conditioned establishments, as per the union budget announcement which Thursday extended service tax to virtually all categories of restaurants.
The Goa Hotels and Restaurants Association has ridiculed the levy of service tax on air-conditioned restaurants.
“By this move the small cafes will be affected,” said Gaurish Dhond, President of the Goa Hotels and Restaurants Association. Deeming this announcement as ridiculous Dhond said, “Today it is no luxury to have an air conditioner. It is a necessity just as cars and offices are air conditioned.”
Dhond said that ultimately the customer will have to pay more as restaurant owners will pass on the additional burden on to the consumers.
With weather conditions requiring even small eateries to install air conditioners, that customers will now have to be taxed seems hard for the restaurant lobby to digest.
“A cup of tea which costs Rs 8 or Rs 10 will have to be increased to Rs 12,” said Dhond.
Sandip Desai, who runs a popular snack outlet on 18 June Road said, “In fact people will now think twice before stepping into a restaurant. While it is not a luxury to have an air conditioner in a restaurant, people will consider it a luxury to eat in air conditioned joints and may prefer eating at home instead.”
While Desai expects the common man to feel the pinch, he was of the opinion that this will not affect tourists in Goa who would not mind spending a few hundred rupees more.
