Govt Exempts Hotels from Paying Authorisation Fee
By Paneetha Ameresekere
Premier Mahinda Rajapaksa in his capacity as Finance Minister by a gazette issued on Tuesday (12) exempted hotels and allied agencies from paying a tax called the ‘authorisation fee’ for this year only.
This exemption means the Treasury will suffer revenue losses ranging from between Rs two million to Rs 10 million from each exempted hotel and allied agency.
Prior to Tuesday’s gazette, five star hotels and above star classes/boutique hotels / boutique villas / heritage hotels of five star hotel category and above which had 250 Rooms or more, had to pay a tax of Rs 10 million each; 200 rooms or more Rs eight million, 100 rooms or more Rs six million, 50 rooms or more Rs four million and seven rooms or more Rs two million, respectively.