Bill to plug evasion of luxury tax by Himachal government


Himachal Pradesh government introduced a bill in the state legislative assembly today to plug evasion of luxury tax besides ensuring revenue growth.

Excise and Taxation Minister Prakash Chaudhary presented the Himachal Pradesh tax on luxuries (in Hotel & lodging houses) Amendment Act, 2014 HPTL (H&LH) seeking amendment in Section 2 and 6-B of HPTL (H&LH) Act 1979.

“Amendment would prevent leakage of tax and ensure revenue growth,” Mr. Chaudhary said adding that the definition of ‘receipt’ was redefined so that tax could be levied on the amount of charges fixed by the government or received by the properties, which is higher for the luxury provided in a hotel.

“After having detailed discussion with the stake holder, it is proposed that the definition of receipt may remain same as it was before the above mentioned amendment of principal act,” Mr. Chaudhary said.

However, in order to prevent leakage of tax and ensure revenue growth it was felt necessary to make enabling provisions to introduce a lump sum scheme compulsory for payment of luxuries tax under the act, he added.

According to state economic survey for year 2013-14 at present about 2,769 hotels having capacity of about 61,497 are registered in the department of tourism.

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