|Delhi govt proposes luxury tax on gyms, spas|
2012-06-06 [12:05:33 hrs]
|Exercising in a gym and enjoying a relaxing spa may cost you more after the Delhi government proposed to levy luxury tax on them.|
|The provision to levy luxury tax on banquet halls, gymnasium and spas has been made in the Delhi Tax on Luxuries (Amendment) Bill, 2012 which was introduced by Chief Minister Sheila Dikshit in the assembly.|
As per the Bill, banquet halls, gymnasium and spas having an annual turnover of Rs five lakh will have to pay luxury tax on their services.
The luxury tax will be also levied on hotel accommodation with tariff of Rs 750 or more per day per room.
Though the Bill did not specify the quantum of the tax, officials said up to 15 percent tax would be levied to be on the services.
The government estimates to collect additional revenue of Rs 15 crore annually from the new services being brought under the luxury tax.