Goa chief minister spares religious institutions' halls from luxury tax

PANAJI: Goa government has exempted the ' agarshalas' (halls) attached to religious institutions from the ambit of luxury tax.

Chief Minister Manohar Parrikar today introduced a Bill in the assembly which will spare the religious institution-run spaces from being taxed.

Soon after presenting his budget on the floor of the House in March, Parrikar had implemented the exemption from levying luxury tax through the Goa Tax on Luxuries (Amendment) Ordinance, 2012, passed on May 25 this year.

The fresh Bill will repeal the ordinance. "The Bill seeks to amend the Goa Tax on Luxuries Act, 1988, which will remove agarshala and hall attached to religious institutions from the ambit of luxury tax net," the statement of objects and reasons of the Bill said.

While sparing the religious institutions, the Bill has proposed levying of luxury tax at the rate of 10 per cent of the receipts on the services provided in beauty parlours and spas.

The tax would be levied on providing services in beauty parlours, spas or health spas and health clubs having air conditioned facility, whose turnover is above Rs five lakh per annum.