Deluxe

Luxury tax hit due to vacant hotel rooms

DELHI

The continuing trend of low luxury tax collection as a result of hotel rooms going vacant in the absence of tourists and business travelers to the city is becoming a cause of concern for the excise department. This department is in-charge of luxury tax collection in Delhi government. With a target of Rs 400 crore from various sources of luxury tax for the current financial year, the state has so far managed to collect just about Rs 130 crore.

The department is now planning to track down hotels that may be evading tax by not registering with the state. Sources said that the state plans to seek data on hotels that may be out of the tax net from the municipal corporation and Delhi Police to launch a crackdown. As of now, there are 1,143 hotels of all categories registered with department of excise covered under the luxury tax bracket.

Read more at Economic Times

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