Government To Impose Additional Tax On Luxury Services, Goods

The government prepares to impose an additional luxury tax on services supplied by five-star hotels and luxury resorts. This tax must only be collected when the hotel or resort provides services.

According to the Finance Bill tabled in the Federal Parliament on Monday, such services will be subject to a 2% tax.

Government would levy the same tax on imported alcohol and diamonds, pearls, gold studded with stones, or precious metal jewelry valued more than 10 lakh rupees.

Tax on imported liquor will be collected through custom at the point of entrance into the country. Sellers of more than a million dollars in metal jewelry must recoup.

If the statement related to luxury tax is not submitted, such responsible person will be charged a fine of 2.5 percent annually until the submission of the details.