Delhi gov to raise threshold limit of luxury tax

In order to reduce burden on tourists and make it easy for small hotels to do business, the Delhi government has introduced an amendment bill in the assembly to raise the threshold limit of luxury tax from Rs 750 per day per room to Rs 1,500 per day per room.

Introducing the Delhi Tax on Luxuries (Amendment) Bill, 2016, in the Delhi assembly, Finance Minister Manish Sisodia said that the bill seeks amendment to Sections 2 and 8 of the Delhi Tax on Luxuries Act, 1996. According to the present provision, the threshold limit for luxury tax is Rs 750 per day per room and the amendment seeks to raise this limit to Rs 1,500 per day per room.

“It is another step towards a simplified tax regime. This amendment will reduce burden on citizens and tourists and make it easy for small hotels to do business in the national capital“, Sisodia said.

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