Start of hotel tax postponed

PHUKET TOWN: Members of the Phuket Provincial Administration Organization (OrBorJor) today voted to postpone the introduction of the controversial tax on hotel room revenue for one month. At the meeting, the members decided that collection of the tax should be postponed until November 1, and that the rate should be 0.5%. This rate will hold until September 30, 2001, after which it will rise to 2%. The decision was passed by a vote of 16 for, 0 against, with six members abstaining. The new tax has drawn angry protests from hotels, and threats of lawsuits and industrial action.