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Luxury tax relaxed for hotels in MP

Written by: Staff

Bhopal, Mar 10 (UNI) The Madhya Pradesh government will provide rebate on luxury tax for eight years to new industrialists investing in tourism sector besides relaxing luxury tax on hotel rent, Tourism, Sports and Youth Welfare Minister Yashodhara Raje Scindia said in the assembly today.

Replying to a debate on the demands for grants for Sports and Youth Welfare and Tourism departments for 2006-07, Ms Scindia said cultural fairs and festivals will be organised besides expanding flight-related services to promote tourism.

A relaxation of one per cent has been given in air-turbine fuel, while efforts are being made to develop Bhopal and Indore airports to international standards and increasing flight services in Jabalpur.

Ms Scindia said Bandhavgarh and Kanha national parks will be developed to international standards, while Rs 55 crore will be spent on repairing and constructing 32 roads that connected to 17 various sites of historical importance besides Rs 30 crore on some other roads.

She said luxury tax has been waived on rooms of hotel that are provided on Rs 5,000 rent for a single day, while it has been reduced to five and 10 per cent for rooms with Rs 1,000 and above Rs 1,000 rent per day.

The Minister said the government intended to constitute a trust with participation from industrialists in tourism sector for benefit of tribals living near national parks' area. The money of the trust will be spent on education and medical expenses of the tribals.

She said 'Gramin Yuva Kendras' will be established in every block to promote sports skill in rural areas, while special competitions will be organised to promote women sportspersons.

Ms Scindia said wrestling, kabbadi, marathon, archery and other sports will be organised in 18 districts in order to promote traditional sports, while hockey excellence centre will be set up in the state besides setting up national training centre for training women hockey players in Gwalior.

Dr Govind Singh (Congress), Ms Archana Chitnis and Mr Girija Shankar Sharma (BJP) besides other members participated in the debate.

Later, the assembly passed Rs 57.19 crore grants for Sports and Youth Welfare department and Rs 14.44 crore for Tourism department by a voice vote.


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