Luxury tax amendment bill tabled in assembly

NEW DELHI: On the first day of the four-day assembly session, the Delhi government tabled the Delhi Tax on Luxuries (amendment) Bill, 2016, on Monday to do away with luxury tax on hotels having rent up to Rs 1,500. The proposal has been approved by lieutenant governor Najeeb Jung.

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As per the existing Delhi Tax on Luxuries Act (1996), any person who stays in a hotel room whose tariff is Rs 750 per day or above, has to pay 15% luxury tax. Once the bill is cleared and the notification is issued, staying at the city’s budget hotels will become cheaper.

The government said the proposal, which was mooted in the budget for the current financial year, was aimed at ensuring ease of doing business. It was also a long-standing demand of the owners of budget hotels.