Delhi assembly passes bill to remove luxury tax on budget hotels

Staying at budget hotels will soon become cheaper with Delhi assembly on Tuesday passing a Bill to do away with luxury tax on such facilities having room rent up to Rs 1,500 per day.

As per the existing 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.

Deputy Chief Minister Manish Sisodia said that the move is 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.

There are a number of budget hotels in Paharganj, Karol Bagh, Mahipalpur, Daryaganj and others areas of the capital, where most tourists coming to Delhi stay. With the new move, the room rent of these hotels will become cheaper.

In March, 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 in the Delhi Assembly.