Restaurants Seek Input Tax Credit and Low-Interest Loans in Budget 2022
“The most important thing we need right now after two years of immense hardship is the restoration of the input tax credit. This will allow the already beleaguered industry to keep its head above water” , said Zorawar Kalra, managing director of Massive Restaurants, which manages brands such as Farzi Cafe, Made in Punjab and Bo Tai. “This is available for other industries and it’s our #1 humble request.”
Kalra said without the reinstatement of the input tax credit, many restaurants will struggle to survive for the next 12 months. “Also, the possibility of furlough schemes, like in the UK. We are also calling for the availability of very low interest working capital loans to help people restart their businesses, as every lockdown requires capital important start-up,” he said.
Rahul Singh, founder of The Beer Cafe, said with an industry battered three times over the past two years, the budget’s intent for the survival of the sector and the restoration of jobs is the industry’s humble expectation . “Specifically, the enhancement of the ECLGS (Emergency Credit Line Guarantee Scheme), the ABRY (Atmanirbhar Bharat Rojgar Yojana) relief and the reinstatement of the GST input tax credit will provide impetus to the recovery,” did he declare.
Priyank Sukhija, CEO of First Fiddle, which runs Lord of the Drinks, Cafe JLWA, Diablo and The Flying Saucer, said the industry was looking for help and the input tax credit needed to be reinstated as soon as possible. . Sukhija had closed all but one of its Delhi outlets after the government banned the catering business due to the spike in Covid-19 cases.
“We are spending so much money to build the restaurants. It is high time the input tax credit was reinstated. The government does not care. There should also be a special sanctioned loan for the industry” , did he declare.
Miten Shah, co-founder of The Studs Sports Bar & Grill, said developments such as multiple operating hours restrictions, capacity restrictions and lack of owner support have all made it difficult for the industry to catering, which represents more than 10% of the overall employment of the country’s “young” working class.