Preamble
Andhra Pradesh Tax on Luxuries (Amendment) Act, 20001
| [Andhra Pradesh Act No. 18 of 2000] | [28th April, 2000] |
An Act Further to amend the Andhra Pradesh Tax on Luxuries Act, 1987
Be it enacted by the Legislative Assembly of the State of Andhra Pradesh in the Fifty-first Year, of the Republic of India as follows:-
SOR Statement of Objects and Reasons
STATEMENT OF OBJECTS AND REASONS
The Tourism Industry is becoming one of the Important powerful growth sector, Government is focusing on Tourism for generating greater employment and achieving high economic growth. Hotels play an important rule in the tourism industry. Rationalisation of luxury tax rates is thought of as one of the measures to encourage tourism.
Luxury Tax is being levied at the rate of 10% on the charges of luxury provided in a hotel from 1-3-1987 when the rate of such charge is Rs. 60/- or more per day. As the rate of luxury tax and also the minimum rate for luxuries provided liable to tax was fixed more than a decade ago there is a need to revise them keeping in view the thrust to be given to the tourism industry.
Certain concessions like exemption from, the levy of luxury tax. For the existing hotels who charge less than Rs. 300/- per day per person and reduction in the rate if tax from 10% to 5% to those who charge Rs. 300/- or more per day per person were already announced. Therefore, Government have decided to amend the Section 3 of Andhra Pradesh Tax on Luxuries Act, 1987 to give effect to the above concessions.
This bill seeks to achieve the above object.
Section 1. Short title extent and commencement
1. Short title extent and commencement.- (1) This Act may be called the Andhra Pradesh Tax on Luxuries (Amendment) Act, 2000.
(2) It extends to the whole of the State of Andhra Pradesh.
(3) It shall be deemed to have come into force on the 18th December, 1998.
Section 2. Amendment of section 3
2. Amendment of section 3.- In section 3 of the Andhra Pradesh Tax on Luxuries Act, 1987, (Act 24 of 1987) in sub-section (1), for the words and figures is Rs. 60/- or more per day per person; a tax at the rate of ten per centum of such rate", the words "is Rs. 300/- or more per day per person, a tax at the rate of five per centum at such rate", shall be substituted.