Tax holiday deadline extended for CWG hotels' project

The tourism ministry today asked the finance ministry to extend the benefits of the five-year tax holiday for under construction hotels in and around Delhi to July 31, 2010, instead of the earlier deadline of March 31.

According to sources, around 25 hotels would benefit from this move and as a consequence the government would have access to 2,000 more rooms for the Commonwealth Games.

"Although these hotels would have been used for the Games they would not have got the tax benefit if the deadline was not extended, as the previous order required them to be operational by 31st March, 2010. Commonwealth Games hotel projects had slowed down following the overall global economic recession," said a statement from the tourism ministry.

With the announcement coming approximately 200 days from the start of the Commonwealth Games, the government hopes the move would encourage the growth of new hotels in the national capital region and help meet the accommodation requirements of the Game.

The tax holiday is available to 2, 3 and 4-star category hotels and convention centers in Delhi and NCR, including Faridabad, Gurgaon, Noida and Ghaziabad.

Besides hotels, accommodation is also being made available in Delhi University hostels, DDA flats, guest houses and bed-and-breakfast establishments.