AAP govt to do away with luxury tax on hotel stay

New Delhi, Aug 18: The AAP government is all set to introduce a Bill in the Delhi Assembly to do away with luxury tax on hotels having rent up to Rs. 1,500 after Lt Governor Najeeb Jung gave his approval to the proposal.

As per the Delhi Tax on Luxuries Act (1996), any person who stays in a hotel room whose tariff is Rs. 750 per day or above, has to pay luxury tax.

"The Lt Governor has given his nod to the proposal to do away with luxury tax on hotel renting up to Rs. 1,500. The AAP government will thus table the Bill in the upcoming Assembly session," said a senior government official.

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 like Paharganj, Karol Bagh, Mahipalpur and Daryaganj in the city have many budget hotels.

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

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.

PTI