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Budget hotels to get cheaper

NEW DELHI: The Delhi assembly passed the Delhi Tax on Luxuries (amendment) Bill, 2016, on Tuesday, that does away with luxury tax on hotels with room tariffs up

Published on: Aug 24, 2016, 09:56:17 IST
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NEW DELHI: The Delhi assembly passed the Delhi Tax on Luxuries (amendment) Bill, 2016, on Tuesday, that does away with luxury tax on hotels with room tariffs up to Rs 1,500. Hence, budget hotels in the city are likely to get cheaper.

HT Image
HT Image

The proposal has been approved by lieutenant governor Najeeb Jung.

According to the previous provision, any person who stayed in a hotel room whose tariff is ` 750 per day or above, had to pay 15% luxury tax.

“Anyone coming to Delhi and staying in a hotel room that costs less than Rs 1,500 can’t really be included in the ambit of luxury. It is possible that some revenue will be lost because of this but I think that the amount spent on collecting this tax by the government machinery was more than what was collected,” said Sisodia.

The amendment was a longstanding demand of budget hotels owners, many of which are in Paharganj, Karolbag, Mahipalpur, Daryaganj and others areas of the capital.

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