The Bengal government has introduced a bill on the floor of the Assembly on Wednesday offering an amnesty scheme for defaulters of entertainment and luxury tax.

The West Bengal Entertainment & Luxuries (Hotels & Restaurants) Tax (Settlement & Dispute) Bill, 2024 will allow applicants under the scheme a waiver of arrears and penalties if they agree to pay the outstanding tax in full.

The comprehensive scheme for settlement of dispute is an effort by the Bengal government to usher in an ease of doing business and may impact hundreds of establishments.

“There have been several disputes with the hotels and restaurants regarding entertainment and luxury tax since 2017. The government is ready to waive penalty and interest provided the hotels and restaurants pay the tax,” state finance minister Chandrima Bhattacharya told The Telegraph.

The government data suggests that there are cases against 900 hotels and restaurants and the total number of cases stands at 5,900, the minister informed.

The total dues pending in disputes is about ₹21.86 crore, including ₹14.59 crore in principal and the accumulated penalty and interest on tax is ₹7.27 crore.

The deadline for pending tax was September 30 but it has now been extended to March 31, 2025.

The amnesty scheme met with positive response from the industry.

“This is a welcome decision from the state government. Clearing the pending disputes relating to taxes, penalties and interest will certainly help the industry. It also highlights the importance of the hospitality and tourism sector to the state government,” said Sudhesh Poddar, president of the Hotel and Restaurant Association of Eastern India.