Luxury Tax threshold limit increased to Rs 1,500

In a bid to simplify tax regime, Delhi Government has announced increase in threshold limit of Luxury Tax from existing Rs 750 to Rs 1,500. “This will reduce tax burden on citizens and tourists and make it easy for small hotels to do business,” said Delhi Deputy Chief Minister and Finance Minister Manish Sisodia. The government has decided to introduce self declaration in Luxury Tax. Assessment of all hotels is compulsory and will be done on random basis. The revenue collection from Luxury Tax has seen an increase of 36.7 per cent. As against last year’s Rs 322 crore of revenue from Luxury Tax, this year will exceed Rs 440 crore is estimated to be collected. Last year, the government had enhanced Luxury Tax from 10 per cent to 15 per cent for all applicable establishment.