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NEWS | 10-year tax holiday for new hotels in rural areas of Himachal Pradesh

The Himachal Pradesh government yesterday announced a ten-year tax holiday for all new hotel projects coming up in the state’s tribal districts and other remote areas. The upcoming hotels will not be charged any luxury tax under the HP Tax on Luxuries (Hotels and Lodging Houses) Act, 1979 and the ten-year period will be calculated from the date they begin operations.
A decision, in this regard, was taken by the state cabinet at a meeting that was presided over by Prem Kumar Dhumal, Chief Minister, Government of Himachal Pradesh yesterday, according to a report by The Indian Express. “The decision is aimed at promoting tourism in rural areas and to divert tourist traffic from urban and popular holiday destinations to these areas. We also aim to create employment opportunities for youth in these areas,” said Dhumal. Himachal Pradesh has been focussing on Rural Tourism, which has already proved reasonably successful, especially with the homestay and Har Gaon ki Kahani schemes.

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