Of air conditioned restaurants and government tax

This afternoon, on my way back home, the thought of having my lunch at KFC came knocking and I couldn’t resist it, for good reasons. I’ve been visiting this particular branch of KFC for some time but I never saw the notice placed at the left corner of the service counter. So, today, while I waited to be served the Chicken Rizo combo I ordered, I saw the image below:

govt tax

As per the government of India regulation with effect from 1 April, 2013 all air conditioned restaurants will have to levy 4.944% service tax on every bill.

I was like, “AIR CONDITIONED”? What is it about air conditioners?

Few thoughts rolled in:

  1. Judging by that notice, we can say that restaurants without air conditions will not levy any tax.
  2. Really, what we pay for is the conditioned air. Nothing more
  3. There are times when the air conditioners don’t work for reasons best known to the management. Is it safe to refuse to pay the additional 4.944% tax at these times?

Do they say with new knowledge comes new actions? On reading that notice, the “bush man” part of me was aroused. So, I decided to act it right there. When I received my order, I headed straight to a sit where I can feel the AC directly :D. In fact, I sat right under the AC (see picture below). At least, that’s the only reason I’m paying 4.944% more, so it’s no crime to enjoy it well. Lol. I even sat for few minutes extra after I finished eating. Hey, I paid for the AC, says the “bush man” voice. Really, I’ve never enjoyed that AC to the extent to which I did today 🙂

air condition

…but seriously, I don’t understand the idea behind playing a 4.944& tax on air conditioned restaurants. I really want to know what the tax is meant for? Can it be because they consume more power due to the giant AC units? …but I think not, since the electricity tariff for commercial shops/buildings is different from what the household pays? Can it be because of the gasses the air release into the atmosphere (do they, if yes, how harmful are these gasses?). This and many more thoughts are currently running through my head. I hope to know the exact reason soon.

Technopreneur. Chief Hustler at 1Plify. PhD scholar [Technology entrepreneurship]

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