Shishir Prashant in New Delhi/Dehradun
The Uttarakhand government has announced exemption in luxury tax for five years on all those old buildings which would be converted into hotels with an investment of 50 per cent of the current market value.
The government currently levies five per cent luxury tax on room rents for all hotels in the state.
Build a hotel in an old building to save tax!
Image: Good opportunity for hotel owners in Uttarakhand."In places like Mussoorie and Nainital, there are several buildings which belong to the colonial era. In case the owners intend to convert them into hotels, we are providing them a good opportunity," said a government official.
Build a hotel in an old building to save tax!
Image: Boost for tourism.The exemption will also be available for the expansion of hotels and tourism units with a minimum of 25 per cent investment of the current market value, the notification said.
Build a hotel in an old building to save tax!
Image: Eemption of luxury tax on non-air conditioned rooms.However, at a time when the government has announced new sops for the hotel industry, plans are also afoot to levy 10 per cent tax on all hotels where the room rent is more than Rs 3,500 per day.
article