Facing the prospect of running a government without finances, chief minister Parkash Singh Badal has already started dropping hints of broadening tax structure, and the first ones to fall in the net may well be those offering “luxury services”.
According to the Times of India the state government is mulling over introduction of “luxury tax” on marriage palaces, banquet halls and hotels. The tax would be charged at a rate of 4%-8% and the excise and taxation department hopes to net a minimum of Rs 40 crore from this sector.
The proposal would be put before the cabinet at a meeting on December 9, say sources.
According to the proposal, hotels which charge tariff upward of Rs 200 per night would be covered under this tax. As for marriage palaces and banquet halls, modalities are being worked out about deciding parameters on which the tax would be charged.
“It could be either on seating capacity or the rental charged from clients. Whether the premises are AC or non-AC, could also be a yardstick. Suggestions would be sought from the cabinet on this,” add sources.
Haryana has a similar tax in place while the central taxation department is already charging a slew of taxes, including a “mandap” tax from marriage palaces and banquet halls. This would be the first tax that the state’s excise and taxation department would be levying on the hospitality industry.
However, owners of hotels and marriage palaces have reacted sharply. Amarjeet Singh, a Ludhiana-based hotelier and general secretary of Hotel Owners Association of Punjab, said the department had sought the industry’s view to the proposed tax a few months back, but there was a great opposition to the move as the state is not a tourist destination, where one could seek luxury tax from hotels.
Source: Times of India December 8, 2008
Related posts:
- Luxury Tax on Hotels and Banquet Halls in Punjab
- Download Luxury Tax Forms Punjab
- Public Notice – Upload Intra-State Transactions w.e.f. 1-6-2011 in Punjab
- Govt for uniform VAT in all states between 0-4 pc: Sahai
- Submission Date for C Forms Extended to 31st Mar, 2011 in Punjab
Sponsored Links