KARACHI, June 7: The Pakistan Hotels Association (PHA) has demanded abolition of bed tax in view of the grim situation that faces the hotel and tourism industry in the country at present.

Speaking at a press briefing after an emergency meeting of the PHA executive committee here on Friday, the association chief, Syed Arshad Ali, said the hotels and tourism industry had suffered greatly after the Sept 11 incident in the US and before it could recover from the shock the May 8 terrorist attack on Frenchmen in the city further crippled the industry.

He said that besides these devastating acts, the heavy deployment of troops on the Pakistani borders and high tensions between Pakistan and India was playing the role of the proverbial last straw that could break the back of the camel. He said that these situations had resulted in foreigners’ flying out of the country and the in-country tourists and the business traffic had also almost come to a standstill.

He said that in Sindh the bed tax, which is charged at the rate of 7.50 per cent of the room rent and calculated at 70 per cent of the capacity regardless of the fact what the room occupancy of the hotel was, had been very heavy and the hotels could not pay it.

The PHA chief said that keeping in view the present situation the NWFP government has already waived the bed tax, while in Punjab and Balochistan the tax was being charged on actual occupancy, whereas hotels in Sindh were not being provided any relief.

He urged the government to help the industry in its time of crisis so that it could recover and could once again earn foreign exchange for the country.

He alleged that tax collectors were pressing hard with unethical practices for the recovery of the bed tax.

He urged the authorities to rescue the industry by abolishing the unjust taxes, like the bed tax, and provide a relief package so that it could survive the testing time. He said that if the relief was not provided the hotels would be forced to consider closing down the business, which would increase unemployment in the country.