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 per cent luxury tax for three months from September. It has also decided to exempt Games ticket sales at stadiums from 15 per cent 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 per cent VAT on all purchases made for the Games. However, the government has not taken a decision on the issue.