Hotel owners call for exemption from sales tax

ISLAMABAD—Islamabad Hotels, Motels and Restaurant Association (IHMRA) has demanded of Federal Board of Revenue (FBR) to exempt hotels from sales tax having annual income less than Rs 5 million.
Talking to Online Friday, IHMRA president Sohail Qadeer Sheikh told hotels owners had increased their rents due to hike in the prices of gas, electricity and raw material and this led to increase in the annual income of hotels. FBR should increase the annual income limit from Rs 2500000 to Rs 5000000 for granting exemption from sales tax as the passengers who stay in small hotels can not pay sales tax, he demanded.
Through the budget proposals furnished to FBR, it has been made clear that restaurant business is akin to general business and it should be brought under the purview of single stage sales tax, he said adding restaurants are part of residential hotels therefore, they should be charged sales tax separately.

—Online