Lower tax on LPG from 18% to 5%, FHRAI writes to PM

FHRAI requests PM Shri Narendra Modi for lowering tax on LPG from 18% to 5% for stand-alone restaurants. The representation to the PM states that since standalone restaurants are not allowed to claim ITC, this move will help reduce the cost burden on restaurants. The latest price hike is the second highest increase in LPG since January 1, 2014, when the 19-kg cylinder became costlier by Rs.353.50 (in Delhi). The Association further highlighted that LPG being one of the most essential commodities in the restaurant industry, the steep price increase will sound the death knell for hundreds of small restaurants from all parts of the country. “This cost escalation of roughly over 30 per cent is severely affecting restaurants that are trying to resume operations and stay afloat after a turbulent twenty months of lockdown and closures. Add to this, the steep hike in the LPG cylinders,” says Mr Gurbaxish Singh Kohli, Vice President, FHRAI.