Delhi government will lose between Rs60 crores to 65crores in entertainment tax and luxury tax, said Delhi chief secretary Rakesh Mehta.
As it endeavours to make the Commonwealth Games in the city a success, the Delhi government is expected to lose about Rs65 crores in tax waivers related to the event.
The government which is spending about Rs15,000 crores
in developing infrastructure for the Games, will lose between
Rs60 crores to 65crores in entertainment tax and luxury tax,
said Delhi chief secretary Rakesh Mehta.
Delhi government has waived off the 10% luxury tax for three months from September. It has also decided to exempt Games ticket sales at stadiums from 15% entertainment tax.
The government says it is likely to lose about Rs35 crores as entertainment tax from the sale of 17 lakh tickets and the luxury tax waiver on hotels will lead to a loss of Rs30 crores.
The luxury tax waiver for hotels will remain in force during September, October and November.
However, Mehta said that "these are small sacrifices Delhi government has to make to make the Games a big success."
There will be 17 lakh tickets with rates ranging from Rs50 to Rs 1,000 for various sport events to be sold for the Games. Ticket rates for opening ceremony are ranging from Rs 1,000 to Rs 50,000 and for the closing ceremony from Rs750 to Rs50,000 for the mega event beginning October 3.
If all the tickets are sold, then we have to forgo Rs35 crores as entertainment tax, the official said.
Besides the Organising Committee of the Games is seeking VAT and road tax exemption for over 200 cars that they will get under sponsorship.
The Committee is seeking waiver of 12.5% VAT while purchasing the cars and exemption on road tax while registering it.
This will cost the Delhi government Rs38 cr approximately, if granted.
The Committee has also demanded waiver of 12.5% VAT on all purchases made for the Games. However, the government has not taken a decision on the issue.
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