In addition, industrial rates would be applicable to village tourism projects, as well as units benefiting from the Rajasthan Investment Promotion Scheme and Mukhyamantri Laghu Udhyog Protsahan Yojana.
Hotels and cafeterias managed by Rajasthan Tourism Development Corporation, Rajasthan State Hotel Corporation will be included in the new tax bracket. All museums operated by the state government and the Center would also pay the UD tax at the industry rate.
Ranvijay Singh, co-secretary of the Rajasthan Hotel and Restaurant Association, said: “This would help many large properties recover some of the losses suffered by hotels during the Covid pandemic.” Currently, the UD tax is levied on properties with more than 1500 square meters. The UD tax is much higher than what the industry pays. While UD tax is calculated on DLC rates, industry rates are much lower.