New Delhi, Sept. 18 -- The Delhi High Court has upheld the Municipal Corporation of Delhi's (MCD) decision to impose a 20% property tax on three-star and above hotels, rejecting challenges from luxury hospitality players who argued the levy was arbitrary and unconstitutional.
In an 87-page verdict released on Monday, justice Purushaindra Kumar Kaurav affirmed that the 2022 tax measure aligns with principles of economic equity, ensuring establishments with greater financial capacity contribute proportionately to public revenue. The court emphasised that luxury hotels form a distinct class justifying differential taxation. "The legislative intent is to equitably distribute the fiscal burden," the judgment stated.
shruti kakkar
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