In view of global economic downturn, Tourism and Hotel Industry has been adversely affected. Therefore, to provide boost to tourism, I intend to make the following changes in Luxury Tax.
· Exemption limit for Luxury Tax will be increased from daily room rent of Rs.149 to Rs.499.
· Luxury Tax will be imposed on actual rates instead of the declared rack-rate.
· Luxury Tax rates will be modified as outlined below.
i) Daily room rent from Rs.500 to Rs.1000: 4%
ii) Daily room rent from above Rs.1000 and upto Rs.2000 : 6% .
iii) Daily room rent above Rs.2000 : 10%.
· Luxury Tax on Marriage Hall will be reduced from 20% to 10%.
· To promote trade exhibitions, Luxury Tax on Exhibition Hall will be reduced from 20% to 10%.
Tax exemption limit increased to Rs. 499/-. Levy of tax on actual rents. Tax slabs revised – 4% on room rents of Rs. 500/- to Rs. 1000/-, 6% on room rents exceeding Rs. 1000/- upto Rs. 2000/- and 10% on room rents exceeding Rs. 2000/-. Tax on marriage halls reduced to 10%. Tax on exhibition halls reduced to 10%.
AMENDMENT IN 2010-11 ********************
Luxury Tax
o Luxury tax on hotels with daily room rents from Rs.1,000 to Rs.2000 increased from 6% to 8%.
o Luxury tax on hotels with daily room rents exceeding Rs.2,000 increased from 10% to 12%.
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