Finance Minister T.M. Thomas Isaac has offered a slew of tax concessions in the Finance Bill for 2016-17 presented in the Assembly, the Taxes Department has clarified.
A department clarification issued here on Wednesday said that in order to support the tourism industry, Dr. Isaac has offered major concessions. Luxury tax would not be levied from hotel rooms with a tariff up to Rs.400 per day. Earlier it was Rs.200. Six per cent tax would be levied for rooms having rent up to Rs.1,000, and for those above Rs.1,000, it would be 10 per cent. Once the revised structure came into force, the special concessions given during June, July and August have been waived.
Hostels run by educational institutions as well as working women’s hostels managed by charitable societies have been exempted from luxury tax.
