5-year tax holiday for star hotels in Delhi

New Delhi, Feb 28: In order to promote infrastructure facilities in the National Capital Region (NCR) ahead of the Commonwealth Games in 2010, Finance Minister P. Chidambaram today proposed a five-year holiday from income tax for two, three and four star hotels as well as convention centres with a seating capacity of not less than 3,000 located in the NCR of Delhi.

Presenting the General Budget 2007-08 in the Lok Sabha today, Finance Minister P. Chidambaram proposed similar tax concessions for the setting up of such facilities in Delhi's adjacent districts of Faridabad, Gurgaon, Ghaziabad and Gautam Buddha Nagar.

These should be completed and begin operation during the period April 1 this year to March 31, 2010.

''The step is aimed at meeting the requirement of 20,000 additional hotel rooms for the Commonwealth Games,'' the minister said.

UNI