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Gym membership,visit to spa get costlier,govt levies tax

Visiting a spa,exercising at a gymnasium and booking a banquet hall will cost Delhiites more with Delhi Assembly on Wednesday clearing a Bill levying luxury tax on them.

Written by Express News Service | New Delhi |
June 7, 2012 1:06:52 am

Visiting a spa,exercising at a gymnasium and booking a banquet hall will cost Delhiites more with Delhi Assembly on Wednesday clearing a Bill levying luxury tax on them.

The Delhi Tax on Luxuries (Amendment) Bill,2012,was passed by the Assembly amid a walk out by BJP legislators who opposed levying of luxury tax on banquet halls,saying it will add to the burden on the “common citizen’’.

As per the Bill,banquet halls,gyms and spas having an annual turnover of Rs 5 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 per cent tax would be levied on the the services.

The BJP opposed levying of taxes on gymnasium and banquet halls saying following imposition of the tax,booking a banquet hall or going to gymnasium would be difficult for the common man.

“We strongly oppose levying the tax on banquet halls and gymnasiums,” said Leader of Opposition V K Malhotra.

Chief Minister Sheila Dikshit,however rejected the demand. “We want to collect revenues from these services availed by affluent section of the society and utilise the funds for welfare of the poor people,” said Dikshit.

She said the tax will not be applicable for banquet halls run by DDA and MCD,which are mainly used by the common man.

The government is hoping to collect an additional revenue of Rs 10 crore annually from the new services being brought under the luxury tax. The luxury tax on banquet halls,gyms,spas and hotel accommodation would be in excess of the VAT on them.

Dikshit said in order to augment the luxury tax base,government has decided to impose the tax on hotel accommodation with tariff Rs 750 and more per room per day. The tax will be effective after the government issues a notification.

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