The Centre on Friday announced that new star-category hotels coming up in districts having a World Heritage Site will also be able to enjoy a five-year tax break. This benefit will be available to two, three and four star hotels and convention centres, constructed and operational between April 1, 2008 and March 31, 2013, in 22 districts which boast of a World Heritage Site.The Centre had first announced a five-year tax holiday for new hotels in the last budget but had restricted the provision to hotels coming up in the National Capital Territory only. This was meant to be an incentive for the hotel industry to construct more rooms before the 2010 Commonwealth Games.But considering that there is a severe shortage of rooms all over the country, the Tourism Ministry had been pressing for an extension of this provision to new projects coming all over the country. Following sustained pressure, the Finance Ministry had agreed in June last year to extend the tax holidays to hotels constructed in 19 districts having places of Buddhist importance.
