Govt to table luxury tax hotels Bill in upcoming Assembly session

The Delhi government is likely to be table the Luxury Tax Hotels Bill during the upcoming Assembly session, scheduled to start from 22 August. Lieutenant Governor (LG) Najeeb Jung has given approval to the Proposal.

The proposal was approved by the Arvind Kejriwal government in a Cabinet meeting held last month.

In March, Deputy Chief Minister Manish Sisodia had announced that the government would reduce the threshold limit of luxury tax on a hotel room from Rs 750 to Rs  1,500 per day, while presenting the 2016-17 budget.

At present, any person who stays in a hotel room, whose tariff is Rs 750 per day or above, has to pay luxury tax.

“The Lieutenant Governor has given his nod to the proposal to do away with luxury tax on hotels renting up to Rs  1,500. The Delhi government will thus table the Bill in the upcoming Assembly session,” said a senior official at the Chief Minister’s office.

If the Assembly passes the Bill, staying at the city’s budget hotels will become cheaper, a move aimed at ensuring ease of business and attracting tourists to the national capital. Places such as Paharganj, Karol Bagh, Mahipalpur and Daryaganj house a large number of budget hotels.

The four-day Assembly session will begin on August 22, during which the Goods and Services Tax (GST) Bill may be ratified, as the Central government aims to get the legislation cleared by at least half of the 29 states to roll out the new tax regime.