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Bill to increase the threshold limit for levy of luxury tax

New Delhi, Aug 23 (Calcutta Tube) The Delhi assembly Monday cleared a bill to increase the threshold limit for levy of luxury tax on room rent in a hotel from Rs.500 or more per day to Rs.1,000 or more — a move which will help budget hotels.

The Delhi Tax on Luxuries (Amendment Bill), 2010 was introduced in the house by Finance Minister A.K. Walia Thursday.

This will help budget travellers’ stay in the national capital during the Commonwealth Games in October.

Delhi has already decreased luxury tax on hotels from 12.5 percent to 10 percent.

The tax relaxation for budget hotels was facilitated through an amendment in the law that regulates the levy of luxury tax on charges for accommodation and other services provided in hotels.

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