The Delhi assembly has cleared a bill to increase the threshold limit for levying the luxury tax on room rent in a hotel from INR500 or more per day to INR1,000 or more.
This move is sought to help the budget hotels in and around the city.
The Delhi Tax on Luxuries (Amendment Bill), 2010 was introduced in the house by Finance Minister A.K. Walia.
This will help budget travellers’ stay in the national capital during the Commonwealth Games in October.
Delhi has already decreased luxury tax on hotels from 12.5% to 10%.
The tax relaxation was made possible through an amendment in the law that regulates imposing of luxury tax on charges for accommodation and other services provided in hotels.
