Exemption limit for luxury tax on hotel rooms hiked

Exemption limit for luxury tax on hotel rooms hiked

New Delhi, July 26: The Delhi government on Monday decided to hike the exemption limit on luxury tax on hotel rooms from Rs 500 to Rs 1,000. This will help budget travellers to the national capital during the Commonwealth Games in October. “In view of increase in the cost index of various services, it was thought to hike the threshold limit of luxury tax from Rs 500 to Rs 1,000 or more per day,” a government official said. Delhi Chief Minister Shiela Dikshit said the luxury tax on hotels has also been decreased from 12.5 per cent to 10 per cent. The step is part of an amendment in clause-I of section 2 of the Delhi Tax on Luxuries Act, 1996, which provides for levy of luxury tax on charges for accommodation and other services provided in a hotel room. Dikshit said the Amenment Bill will be introduced in the August 17-23 session of the Assembly. “The decision has been taken in view of the October 3-14 Commonwealth Games and on requests,” she added. (IANS)