Some hotel markets are known for having incredibly high taxes and fees. In some cases this is purely "legitimate" taxes, while in some cases they package taxes and a service charge for employees under the same amount, even though those are very different things. For example, when I think of booking a hotel in Mexico,…
Continue reading: India Cutting Outrageously High Hotel Taxes
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Why are these taxes considered high? What about all the stadiums funded by tourists? I remember paying almost 50% over the actual car rental rate in Houston many years ago thanks to fees & taxes.
@Vijay Most of the taxes & fees you encountered in Houston are local to them. The Indian hotel taxes being reduced are uniform across the country.
The luxury tax isn't charged on the published rate instead of the actual paid rate anymore, is it?
In many european countries VAT is charged at 20% (or more) and is has to be part of the room rate. This is a lot more honest than adding the tax on after, not least because, as a value added tax the VAT paid by the hotel is net of any VAT the hotel pays to suppliers. I’m not sure if the situation is the same in Mexico but it’s a lot more honest to include the VAT as part of the room rate.
Of course the question for the Indian people is wether this was a significant source of revenue for the government and where that revenue (or cuts in public services) is going to come from instead.
Lukas is right. 28 to 18% means a decrease of 10 percentage points, not 10 percent. See https://en.m.wikipedia.org/wiki/Percentage_point
"Outrageously High Hotel Taxes"?? give me a break... have you stayed in a Houston hotel?
Also, India has some of the lowest rates for top tier hotels ...I don't mind paying the taxes given the overall value for money
Never found the taxes to be concerning during hotel stays in India.
Glad to see that taxes are increasing on carbonated beverages, not just caffeinated. Maybe the States should follow.