The recent ruling by a division bench of Kerala high court on imposing luxury tax on hotels for providing boating, trekking, sightseeing and other services outside hotel premises is likely to cost tourists dear.
The court ruled that services provided outside hotel premises can attract luxury tax. Currently, hotels and resorts pay 12.5% luxury tax for hotel rooms. Imposing more tax will finally fall on the shoulders of end-users.
Tourists will have to pay more for boating and other services depending on how much tax government will impose on hotels. At present, they pay Rs 3,000 per hour for speed boating for five members, though the amount will vary depending on hotels as per a TOI report.
Jose Pradeep, treasurer of Association of Approved and Classified Hotels of Kerala, said, "Imposing more tax on hotels, which provide such services, will directly affect end-users. Hotels will have to increase rate for these services."
» Read Complete News.....Jose Pradeep, treasurer of Association of Approved and Classified Hotels of Kerala, said, "Imposing more tax on hotels, which provide such services, will directly affect end-users. Hotels will have to increase rate for these services."
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