Goa hotel and restaurant association (GHRA) has claimed that the hike in the trade licence fee and signboard tax effected by the corporation of the city of Panaji (CCP) from this financial year onwards is exorbitant and unreasonable.
Claiming that CCP in undue haste has levied and implemented the increased taxes / fees without following the proper procedures laid down by law, it has sought intervention by chief minister Manohar Parrikar, who is also the MLA from Panaji.
Refuting the claims made by GHRA, CCP mayor Surendra Furtado, said there will be no rollback and the corporation is fully justified in increasing the taxes.
Gaurish Dhond, president of GHRA, in his letter to Parrikar, complained that hoteliers are compelled to pay CCP trade licence fees with an almost 125 per cent hike.
Signboard tax has been increased by 100 per cent and garbage collection charges have been increased by almost 80 per cent to 150 per cent.
GHRA stated the increase was objectionable and unreasonable. "Proposed increase of taxes should be first discussed in a special meeting of the council, which we learnt was never held, nor the increase of taxes was published as required under the rules," Dhond said.
Furtado said the decision to hike taxes was taken by the previous standing committee which was headed by the former mayor Vaidehi Naik. And it was approved by commissioner Sanjit Rodrigues under Section 82 of the CCP Act, during intervening period (when mayor's election was deferred in March).
When contacted, however, Sanjit Rodrigues, said the CCP could have made the changes it wanted when the budget was approved in the first meeting of the corporation. Justifying the hike in signboard taxes, the mayor raised a question as to why hotels should not be charged. He said hotels get paid by the companies whose signboards they display in their premises.
Furtado further added that charges for the first signboard displayed by a hotel has not been increased, and that the hike will only influence the subsequent installations.
City hoteliers are also upset about the increase in charges of garbage collection which they claimed is between 80% and 150%. Moreover, they are also unhappy for being asked to deposit 12 months garbage collection charges to the CCP in advance or else their trade license will not be renewed. "It is indeed strange that an advance payment of garbage collection is to be made for the year where services are yet to be deployed.