The Kerala State Homestay and Tourism Association (Kerala HATS), a consortium of homestay providers and tourism promoters, has urged the Department of Power to implement an order issued by the Kerala State Electricity Regulatory Commission bringing homestays under LT1A Tariff (domestic tariff).
Homestay entrepreneurs say they were still being levied under LT 7 A tariff (commercial power connection), though the Regulatory Commission issued an order excluding homestays from the commercial tariff in July. Homestay entrepreneurs have been demanding to spare them from 0.5 per cent luxury tax, 7-A power tariff.
“Charges under commercial tariff and luxury tax were introduced on homestays in 2006. As a result of the frequent efforts by entrepreneurs and Kerala HATS, the state government in the tourism policy released in June stated that homestays would be excluded from commercial power tariff, and the Electricity Regulatory Commission issued an order in this regard in July itself. However, the KSEB authorities still charge homestays under commercial rates,” said Kerala HATS director M P Sivadathan.
“The entrepreneurs have now paid the charges under the commercial rates to avoid disconnection. They want the already-paid excess amount be deducted in the next bill,” Sivadathan said.
He said the domestic tariff on electricity charges for homestays was a big boost to the sector as the entrepreneurs get guests mainly during season. The rest of the year they are paying charges at higher rates without any turnover,” he said.
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