New hotels in Himachal tribal areas to get 10 year luxury tax exemptions

Shimla: To promote tourism in tribal and hard areas, the Himachal cabinet decided to exempt luxury tax on upcoming hotels for a ten year period from the date they start functioning.

Presided over by chief minister Prem Kumar Dhumal, the cabinet under HP Tax on Luxuries (Hotels and Lodging Houses) Act, 1979 here today relaxed the tax norms for upcoming hotels in tribal areas like Kinnaur, Lahaul and Spiti for ten years.

This was done to promote tourism in rural areas, divert tourist traffic from urban and overcrowded destinations and enable youth in these areas to set up self-employment avenues, state a cabinet spokesman.

The cabinet also decided to extend the time period for traders to furnish annual returns by November 30 under the HP Value Added Tax Rules, 2005.

In public interest and extra work load, the cabinet decided to transfer irrigation and public health (IPH) sub-division, Rampur-II in district Shimla to Darlaghat under IPH division, Arki in district Solan along-with posts.

While the cabinet upgraded on health sub centre in Bilaspur district to primary health center (PHC), it approved opening of a new PHC at Hansa in Lahaul valley and one health sub-center at Nainidhar in Sirmaur district.

On learning that heads of department were making commitments in court that were not vetted by the finance department and these commitments had financial implication the cabinet asked officers from doing so.

In future any officer making such commitment or issuing letters or orders at his own, would be held personally responsible and accountable for the financial loss occurring thereof, the cabinet spokesman said.

To fortify the college cadre, cabinet gave its nod for filling up 92 assistant professors posts through HP Public Service Commission recruitments.

To implement various programs during the 13th Finance Commission period the cabinet decided to fill 56 posts in economics and statistics department through outsourcing.

Monthly honorarium of panchayat samiti members were raised to Rs 1800 and have been made equivalent to that of panchayat pradhans by a cabinet decision here today.

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  1. says: lkkapoor

    No doubt, the move to exempt will attract investors to provide more amenities but my appeallis that only hotels etc. having regard to hill architecture or the architectural style of the area be exempted otherwise what is the difference between plain and hills? The tourists arriving to such far flung likes to see something new, not seen by them or can say , the culture heritage of the place.

  2. says: Indian Tourister

    Thats a great step by Himachal Tourism.. It will sure work and take tourism at its highest level.

    News from is a great way to get keep in touch with activities happening around Himachal. Thanks for Sharing!

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