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Haryana to levy tax on hotels, banquet halls

Special Correspondent

Water rates to be revised; VAT on CFL, tubelights down

CHANDIGARH: The Haryana Government on Wednesday decided to levy tax on luxuries provided in hotels and banquet halls across the State to mobilise additional resources. Chief Minister Bhupinder Singh Hooda told media persons here after presiding over a meeting of the Cabinet that the tax would be levied from August 1 through an Ordinance as the State Assembly was not in session.

Mr. Hooda disclosed that the tax would be imposed on hotels at the rate of 10 per cent on tariff notified at Rs. 2,000 per day and above. Similarly, tax on banquet halls, marriage palaces and so on would be imposed at the rate of 10 per cent on tariff of Rs. 20,000 per day and above.

The Cabinet also decided to reduce the rate of tax under VAT on Compact Fluorescent Lamps (CFL) and tubes from 12.5 per cent to 4 per cent. It also decided to reduce VAT on spares and parts of railway coaches, engines and wagons from 12.5 per cent to 4 per cent with effect from April 1, 2007.

Mr. Hooda said that the water rates would be revised but there would be no change in the rates for drinking purpose and agriculture.

It also decided to amend Section 27 of the Punjab Excise Act, 1914 (as applicable to the State of Haryana) enabling the leasing out of manufacturing of Indian Made Foreign Liquor (IMFL).

The Cabinet also approved a proposal of the Haryana Transport Department to amend (Group B) Service Rules, 1992, to make a provision for increase in the proportion of direct recruitment candidates for Haryana Roadways.

It also approved a proposal to increase by Rs. 5.9 crore the cost of extension of the Delhi Metro railway network to Gurgaon.

It also decided to enhance the overall grading of Annual Confidential Reports (ACRs) of police personnel from the existing three categories to five categories.

It also decided to amend the Haryana Civil Services (Punishment and Appeal) Rules, 1987, to streamline disposal of disciplinary proceedings and conduct of enquiries against delinquent officials.

Mr. Hooda said the Cabinet also approved the Haryana Industrial Promotion Rules, 2007, to ensure trouble-free operation for promotion of industrial development and facilitation of new investments.

It was also decided to grant Class I status to veterinary surgeons in the State subject to condition that the entry level qualifications would be modified to include registration with the Veterinary Council of India.

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Haryana to levy tax on hotels, banquet halls

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