In a recent development to the Delhi government’s decision on exempting payment of Luxury Tax for hotel rooms booked through Commonwealth Games Travel Office has drawn flak from the hospitality industry. The statement by Sheila Dikshit, Chief Minister, New Delhi, in this connection has been widely criticised by the industry and the move has been termed as ‘discriminatory’ by hotel owners and industry associations.
Dikshit had informed that the Delhi government will offer Luxury Tax exemption on hotel accommodation in Delhi for one month, from September 16-October 16, 2010, for all hotel bookings coming through Commonwealth Games Committee for delegates and technical experts during the Commonwealth Games. She added that the state government will forego an estimated Rs 30 crore in Luxury Tax in this regard.
Calling the proposed move ‘fraction of good news’ for the industry, Rajindera Kumar, President, Federation of Hotel and Restaurant Associations of India (FHRAI), demanded that the exemption should be given to all bookings irrespective of the source. |