Badal cuts luxury tax to boost hospitality sector
Punjab's Deputy Chief Minister Sukhbir Singh Badal on Thursday slashed luxury tax to four per cent from ten and eight per cent in marriage palaces and hotels respectively to stimulate hospitality sector which has been hit hard by the economic meltdown.
Badal also deferred the External Development Charges (EDC) payment by one year for the realty sector.
Besides, Badal regularised unauthorised colonies by including them in town development scheme with certain conditions.
Allotees/Assosiations would have to ensure 30 feet wide road in the colonies with five percent green belt, besides paying Rs 400 per square yard development charges.
Small colonisers and property dealers got a gift from Deputy Chief Minister as he announced reduction from 75 Acre limit to 25 Acre for development of a colony.
For development of group housing societies the 10-acre limit has been reduced to five acres.
He also deferred payment of external development charges by one year and also reduced surcharge for late payment from 19 per cent to 2-3 per cent.
He said that reduction of luxury tax to 4 per cent from 10 and 8 per cent would provide much needed boost to this industry.