New Delhi: The Delhi assembly on Tuesday passed the Delhi Tax on Luxuries (Amendment) Bill, 2016 which is aimed at reducing burden on tourists and citizens and offering small hotels relief from luxury tax.

The bill, introduced by Deputy Chief Minister Manish Sisodia in the assembly on Monday, seeks to double the threshold limit of luxury tax from a room costing Rs 750 per day to Rs 1,500 by amending Sections 2 and 8 of the existing 1996 act.

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Speaking in assembly during the discussion on Tuesday, Sisodia, who also holds the finance portfolio, said that it will benefit the common man who searches for budget hotels.

“Not only tourists but several other people come to the city because of various works and they opt for choosing budget hotel which comes under the range of Rs 1,000. Earlier people had to pay luxury tax if they take any room on rent above Rs 750 but now with this move they will not have to shell out extra money from their pocket,” he said.

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