The Vijayawada Hotel Owners Association has appealed to the Andhra Pradesh government to address concerns over commercial piped natural gas (PNG) pricing and reduce the Goods and Services Tax (GST) burden on rental premises used by hotels and restaurants.
In a representation submitted to Joint Collector S. Ilakkiya, the association highlighted rising operational expenses faced by hospitality businesses due to higher commercial PNG rates and taxation on leased properties.
According to the association, commercial PNG prices charged by certain distributors in Vijayawada are significantly higher than those in several other regions, placing an additional financial strain on hotels and restaurants. While public sector oil companies generally follow standard pricing mechanisms, the association alleged that some private distributors are charging comparatively higher rates.
The hotel body pointed to pricing disparities between Vijayawada and Rajahmundry and urged the state government to introduce a uniform pricing framework for commercial PNG across Andhra Pradesh. It argued that rationalized gas tariffs are essential as businesses are increasingly encouraged to adopt cleaner and more efficient piped gas systems.
The association also sought a reduction in GST on rental premises used by hotels and restaurants from the current 18% to 5%. Industry representatives stated that the existing tax structure has increased operating costs, particularly for small and medium-sized establishments, impacting their long-term sustainability.
Emphasizing the hospitality sector’s contribution to employment generation, tourism promotion, economic growth, and state revenue collections, the association requested the government to consider its demands favorably to support the industry’s continued growth and competitiveness.
The appeal comes amid growing concerns within the hospitality sector over rising input costs and the need for policy measures to enhance business viability and encourage investment in tourism-related infrastructure.
