Homestays seek tax, tariff shelter

KOCHI: Aimed at attracting more entrepreneurs to homestay business, the Kerala State Homestay and Tourism Association (Kerala HATS), a consortium of homestay providers and tourism promoters, has recommended to the state government to exclude homestays from 7A tariff (commercial power connection) and 0.5 percent luxury tax.Kerala HATS director M P Sivadattan said these were the two major demands put forward before the top brass of the Tourism Department at a meeting held in Thiruvananthapuram recently.Higher officials have ensured that the matter would be taken up before the government soon, he said.Kerala HATS had launched an awareness campaign for homestay entrepreneurs in November last, aiming to create awareness on registering and getting classified.As per the statistics available with the Kerala HATS, the number of authorised and classified homestays in Kochi is just 65 while the number of unauthorised ones runs to more than 300.“Kerala HATS would like to see more and more entrepreneurs starting new ventures in this sector.Under the commercial power connection, a consumer has to pay a higher rate even during off season.The consumer also has to pay the rent for the meter.This has prevented many from starting homestays,” he said.“In the case of luxury tax, it has come to our notice that government got negligible amount by way of luxury tax from homestay owners.Therefore, it will be better if the tax is waived,” Sivadattan said.