Archive · 30 Sep 2025

Hotel GST Cut Doesn't Lower Bills Due to ITC Changes

Hotel GST Cut Doesn't Lower Bills Due to ITC Changes

The government lowered the tax (GST) on hotel rooms, hoping to make them cheaper.

However, your hotel bill probably didn't go down.

This is because hotels can't get back the tax they paid on things like rent and services (ITC).

This extra cost means they can't lower their prices.

Online travel agencies also face increased costs, and the benefits they offered are removed.

Experts say this hurts mid-market hotels.

Domestic tourism is growing, but this change might slow down investment and expansion.

Hotel groups want the government to change the rules to help hotels lower prices and boost tourism.

Sources