Beijing’s Ritz-Carlton hotel fined 2 million yuan for raising rates after China’s tax reform
Five other firms also penalised for increasing prices despite new system designed to lower their taxes
A Ritz-Carlton hotel in the Chinese capital has been fined 2 million yuan (HK$2.3 million) for raising prices on the pretext of covering extra taxes.
The luxury hotel in downtown Beijing had increased its food charges after the government’s implementation of a major tax overhaul.
The National Development and Reform Commission said on Friday that Ritz-Carlton had used the tax reform to impose additional charges on food served in the hotel.
The case comes after a series of hotels and other businesses tried to increase their prices following a new value-added tax system that took effect in May.
The tax reform was aimed at lowering the tax burden of businesses, but many firms complained that it actually added to their taxes, and increased their prices as a result.