The government's plan to draw revenue from rich tourists is a blow to the hotel industry in an already wavering economy and may be enough to drive tourists into other Indian states, or even countries.
Delhi’s sector has strongly opposed the proposed luxury tax scheduled to be applicable from 10 August as it reels under the impact of stiff competition and the global economic slowdown.
As many as 10,000 hotel rooms among 438 hotels in five-star deluxe category to unapproved categories in the state are estimated to fall under the proposed tax regime.
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