Hoteliers oppose imposition of proposed Luxury Tax

JALANDHAR: The proposed imposition of Luxury Tax on the hotel industry in Punjab would be detrimental to the sector's growth, state's Hotel and Restaurant Association said on Saturday.

"Although the rate of interest on hotel industry of neigbouring states Himachal Pradesh and Haryana is just four per cent, it is 12.5 per cent in Punjab and if Luxury Tax is imposed, it will impact the industry adversely," said Paramjit Singh Budhraja, Chief Patron of the association.

He said the association had written to the Chief Minister to register its protest against the proposed Luxury Tax.

"On the one hand, the state government has pledged to promote tourism in the state but on the other hand, it is taking such steps to overburden the hotel industry."

Wherever Luxury tax is imposed in the country, it is imposed on room rents in the excess of Rs 2,000, but it is learnt that the Punjab government proposes to levy the tax on room rents above Rs 200 a day, he said.