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Published on Sep 14, 2012
The Delhi government's set to levy a 'luxury' tax on the services of health clubs, gyms and spas, as well as to up the luxury tax on hotel rooms. Such taxes are over and above normal taxes paid for these services. The concept of a luxury tax is unreasonable, a throwback to the old socialist era. All economic activities generate wealth, and there is no reason why some activities should be discouraged by designating them as luxuries and levying an extra tax on them.