Delhi to lose Rs 65 cr revenue in tax waiver for CWG

As it endeavours to make the Commonwealth Games in the city a success, the Delhi government is expected to lose about Rs 65 crores in tax waivers related to the event.

Updated: Jun 06, 2010, 13:10 PM IST

New Delhi: As it endeavours to make the
Commonwealth Games in the city a success, the Delhi government
is expected to lose about Rs 65 crores in tax waivers related
to the event.

The government which is spending about Rs 15,000 crores
in developing infrastructure for the Games, will lose between
Rs 60 crores to 65 crores in entertainment tax and luxury tax,
said Delhi Chief Secretary Rakesh Mehta.

Delhi government has waived off the 10 percent luxury
tax for three months from September. It has also decided to
exempt Games ticket sales at stadiums from 15 percent
entertainment tax.

The government says it is likely to lose about Rs 35
crores as entertainment tax from the sale of 17 lakh tickets
and the luxury tax waiver on hotels will lead to a loss of Rs
30 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
Rs 50 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 Rs 750
to Rs 50,000 for the mega event beginning October 3.

If all the tickets are sold, then we have to forgo
Rs 35 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 per cent VAT
while purchasing the cars and exemption on road tax while
registering it.

This will cost the Delhi government Rs 38 cr
approximately, if granted.

The Committee has also demanded waiver of 12.5 percent
VAT on all purchases made for the Games. However, the
government has not taken a decision on the issue.

PTI