FHRAI Criticises Luxury Tax on Delhi Hotels

The Federation of Hotels & Restaurant Associations of India (FHRAI) has protested against the luxury tax levied on hotel rooms with tariff of above Rs 750, and on banquet halls, health clubs and spas with a turnover of Rs 5 Lac. Already in combat with the global recessionary pressure, the apex industry body has voiced their concerns regarding the additional tax to Sheila Dixit, Chief Minister of Delhi. According to FHRAI, the tax-burden will befall 438 hotels, which will sum together 9,575 rooms. The new tax rates will make room prices unaffordable and hinder growth, debated FHRAI, according to a news website.

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