1. Delhi Govt. Proposed Limit on Luxury Tax on Hotel Rooms
Delhi government has proposed something relaxing for travelers who are frequent to Delhi and have to pay heavy hotel room bills. Government proposed a limit on the Luxury Tax on hotel rooms from Rs. 750 to Rs. 1,500 where this tax will not be applied. Thus, visitors who book hotel room below 1500 will never have to pay Luxury Tax, as proposed in the current budget 2016-17 presented by Aam Admi Party’s government. The budget also proposes self-declaration of Luxury Tax by establishments and is expected to be an initiative while considering the promotion of tourism in the state. In the current budget, special consideration is provided for funds to promote branding campaign for promoting Delhi as tourist destination.
The budget also proposed skywalk connection to the heritage structure, Qutab Minar by connecting it to nearest metro. Moreover, there is a steep cut in the Value Added Tax VAT from 12.5% to 5% and the tax relief on various sectors is still in consideration. Further, to reduce the burden of taxes, government has announced various initiatives to avoid multiplicity of taxation that will promote trade and business in the state.
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