Hotel owners in the State, who announced a state-wide bandh on May 30, will press for retaining the 5 per cent tax instead of the proposed maximum 18 per cent. This demand will be made during the GST review meeting to be held in New Delhi on June 3.

Despite representation to keep the slab at 5 per cent, the GST panel had proposed minimal taxes for business turnover below Rs 20 lakh at 5 per cent, Rs 20-50 lakh, non-AC restaurants at 12 per cent and 18 per cent tax on AC restaurants, which is presently 8 per cent, Coimbatore District Hoteliers Association President, D Srinivasan told mediapersons here today.

The owners have decided to close nearly 1,500 bakeries, 400 restaurants and 300 small eateries in around Coimbatore in response to the May 30 bandh call given by Tamil Nadu Hoteliers Association, he said.

The State had a VAT rate of 2 per cent, which would go up to 10 once GST was implemented, Srinivasan said, adding that common people would be affected.

The bandh would lead to a loss of around Rs4-5 crore in the district.

Hotelier associations in Puducherry and Kerala had extended their support, he said, adding that the Traders Association, led by Vikramaraja, which was meeting tomorrow was also expected to support the bandh.