The Hotel Tax is collected under the provisions of Punjab Finance Ordinance 1978, (Provisions relating to the levy and collection of Hotel Tax) and the Punjab Hotel Tax Rules, 1992. This tax is levied and collected from the owner or management of a hotel against the total number of lodging units (rooms) actually occupied in the hotel. The rate of tax varies from 4% to 8% details of which are as under:
Rate of Tax
A-Lodging unit of a hotel actually occupied.
8% of the daily charges of a lodging unit. No tax is levied if daily charge for a lodging unit is less than Rs.25/-.
B-Lodging unit of a hotel at Hill station actually occupied
4% of the daily charges of a lodging unit. No tax is levied if daily charge for a lodging unit is less than Rs.25/-.
Note: This levy has been shifted to Punjab Revenue Authority (PRA) w.e.f 1-7-2014