West Bengal Assembly Introduces Bill to Settle Tax Arrears for Hotels and Restaurants

The West Bengal government has introduced a new bill in the assembly to address tax arrears for numerous hotels and restaurants. The West Bengal Entertainments and Luxuries Hotels and Restaurants Tax Settlement of Dispute Bill, 2024, was passed after amending the 1972 Act. This initiative aims to resolve outstanding tax issues in the hospitality sector.

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Finance Minister Chandrima Bhattacharya highlighted that 5,900 cases involving 900 hotels and restaurants are pending in courts and tribunals. These cases pertain to entertainment and luxury taxes. The total outstanding amount, including interest, is Rs 21.86 crore. Of this, Rs 14.59 crore is unpaid tax, while penalties and interest account for Rs 7.27 crore.

Tax Payment Extension

The deadline for settling these tax dues was initially set for September 30. However, it has now been extended to March 31, 2025. This extension provides more time for businesses to clear their dues without facing immediate penalties.

BJP MLA and Opposition Chief Whip Sankar Ghosh participated in the bill's discussion. He supported the government's primary aim but opposed a full waiver of interest and penalties on tax arrears. Ghosh argued that such a waiver would be unfair to those who have paid their taxes on time.

Proposed Amendments

Ghosh suggested a compromise by proposing a 50 per cent discount instead of a complete waiver. However, the state government did not accept this proposal, maintaining its stance on the bill's provisions.

In a related development, the Business Affairs Committee decided to extend the current assembly session until December 11. This decision followed a meeting held in the assembly on Wednesday.

Upcoming Legislative Agenda

The committee also planned the introduction and passage of several other bills during this extended session. Among these are the West Bengal Municipal Corporation Amendment Bill, 2024, and the West Bengal Municipal Amendment Bill, 2024.

This legislative activity underscores the government's focus on resolving financial disputes while advancing other municipal reforms. The ongoing session will provide a platform for further discussions and decisions on these critical issues.