Staying at city budget hotels to get cheaper

In a move aimed at attracting more tourists, the Delhi government has proposed to do away with luxury tax on hotels that charge less than Rs 1,500 per room per night. The proposal was approved by the Kejriwal government in a Cabinet meeting earlier this week and will now be sent to lieutenant-governor Najeeb Jung for his approval to amend the Luxury Tax Act.

The earlier threshold was Rs 750. “After the Cabinet’s approval, the government will send the proposal to the lieutenant-governor to seek his prior approval in amending the Sections 2 and 8 of the Act. Once we get the L-G’s approval, the bill will tabled in the Assembly,” a senior government official said.

“It is proposed that the threshold limit of luxury tax be raised from the present room tariff of Rs 750 per room per day to Rs 1,500,” the proposal said.

Hotels are levied luxury tax of 15 per cent on hotel rooms. The change in the threshold limit will benefit hundreds of small hotels, especially in areas such as Paharganj, Mahipalpur, Daryaganj and Karol Bagh that attract budget travellers. 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 Rs1,500 per day.city budget hotels to get cheaper