CHIKKAMAGALURU: After Kodagu, owners of homestays here, too, have demanded that their properties be considered non-commercial units and the policy of Atithi Homestay Scheme be adhered to.
According to the Homestays Association, there was no uniformity in fee and tax collection with regard to homestay units. The association claimed the authorities were known to impose high taxes, and the land where homestays were established was required to be converted into commercial land.
In addition, although the Atithi Homestay Scheme clarifies that these units are to be treated as non-commercial, the electricity and water charges are still not being levied at domestic rates, said Thejaswi, the president of Chikkamagaluru Homestay Association.
An officer attached to the district administration assured that the issue has come to notice and suitable measures would be taken to address it.
A circular issued by the Kodagu district administration recently said homestays should not be treated as commercial establishments, and local administrative bodies were directed to cap approval fees for these establishments at Rs 500, in addition to statutory taxes. Electricity and water charges were also to be levied in keeping with domestic tariffs, the association members said.
The Kodagu district administration’s decision has helped ease the financial burden on homestay operators, encouraging sustainable tourism in the district.
According to Thejaswi, a similar rule should be implemented in Chikkamagaluru as well.
However, in Chikkamagaluru district, registration of homestays requires mandatory conversion of the land into commercial units, and municipal authorities impose high fees for issuing no-objection certificates to homestay owners.
Thejaswi claimed these practices were in contravention of the gazette notification that clearly states that conversion of the status of the land isn’t necessary for homestay registration, and a fixed and uniform fee should be charged.
The no-objection certificate should itself serve as the proof of ownership for the applicant, he added.
