Delhi Deputy Chief Minister and Finance Minister Manish Sisodia today announced an increase in threshold limit of luxury tax from existing Rs 750 to Rs 1500, aimed at reducing tax burden on citizens and tourists and making it easy for small hotels to do business in the national capital.
Presenting the 2016-17 Budget in the Assembly, Sisodia said that as on today, assessment of all hotels is compulsory. His government has decided to introduce self-declaration in luxury tax. Assessment will be done on random basis.
With the government's new luxury tax structure, people don't need to pay luxury tax on booking a hotel room whose rent is up to Rs 1500 per day, which was earlier Rs 750.
"The revenue collection from entertainment tax has seen an increase of 60 per cent. As against last year's Rs 148 crore of revenue from entertainment tax, this year exceed Rs 237 crore is estimated to be collected," he said.
