CM steady, Luxury Tax bill passed
7 Jun 2012 1:14 AM GMT
The Luxury Tax bill was passed with a voice vote in the assembly on Wednesday. The BJP MLAs. however, staged a walkout in protest.
Despite a heated discussion, and a protest by the Opposition regarding the luxury tax on banquet halls, gymnasiums, health clubs and spas, Chief minister Sheila Dikshit defended the bill. She said, ‘We are doing this to collect more funds from those who can pay us and help the poor people with it.’
Dikshit said, ‘We have withdrawn VAT on CNG and textiles. Petrol prices have also been decreased. In all other states, including Haryana, MP, Punjab,Karnataka and Maharashtra, there is 10-20 per cent tax on these items.’
Earlier, the Opposition had raised the issue, saying it was ‘anti-people and anti-health’ bill and the CM should think before passing it.
Leader of Opposition V K Malhotra lamented, ‘The bill has changed the definition of luxury. We should encourage people and give them incentive to be healthy. But the government is doing the exact opposite thing. We want that the bill should at least be sent to the Select Committee.’
The bill includes banquet halls and hotel rooms that charge more than Rs 750 a day. Earlier, 10 per cent luxury tax was charged on rooms with a rent of Rs 1,000 and above. Under the new regime, the tax could go up to 15 per cent.
While the Excise department has not provided any details on the matter, Delhi government has stated the new rates will be decided in a course of few weeks.
Meanwhile, proprietors of banquet halls, gymnasiums, health clubs and spas, who have an annual turnover of over Rs 5 lakh, will have to register under the Luxury Tax Act. Rate of luxury tax on hotel rooms was brought down to 10 per cent from 12.5 per cent in June 2009. Dikshit also cleared that DDA and MCD banquet halls will not come under the Act. She said, ‘We will see what effect it will have upon the commoners. I can assure you it won’t be much. If there is something to be discussed, we will sort it out in the coming Monsoon session in the month of August-September.’
Despite a heated discussion, and a protest by the Opposition regarding the luxury tax on banquet halls, gymnasiums, health clubs and spas, Chief minister Sheila Dikshit defended the bill. She said, ‘We are doing this to collect more funds from those who can pay us and help the poor people with it.’
Dikshit said, ‘We have withdrawn VAT on CNG and textiles. Petrol prices have also been decreased. In all other states, including Haryana, MP, Punjab,Karnataka and Maharashtra, there is 10-20 per cent tax on these items.’
Earlier, the Opposition had raised the issue, saying it was ‘anti-people and anti-health’ bill and the CM should think before passing it.
Leader of Opposition V K Malhotra lamented, ‘The bill has changed the definition of luxury. We should encourage people and give them incentive to be healthy. But the government is doing the exact opposite thing. We want that the bill should at least be sent to the Select Committee.’
The bill includes banquet halls and hotel rooms that charge more than Rs 750 a day. Earlier, 10 per cent luxury tax was charged on rooms with a rent of Rs 1,000 and above. Under the new regime, the tax could go up to 15 per cent.
While the Excise department has not provided any details on the matter, Delhi government has stated the new rates will be decided in a course of few weeks.
Meanwhile, proprietors of banquet halls, gymnasiums, health clubs and spas, who have an annual turnover of over Rs 5 lakh, will have to register under the Luxury Tax Act. Rate of luxury tax on hotel rooms was brought down to 10 per cent from 12.5 per cent in June 2009. Dikshit also cleared that DDA and MCD banquet halls will not come under the Act. She said, ‘We will see what effect it will have upon the commoners. I can assure you it won’t be much. If there is something to be discussed, we will sort it out in the coming Monsoon session in the month of August-September.’
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