Kerala high court upholds government’s decision to levy luxury tax on hospital rooms above Rs 1,000

Sunday, January 8, 2017

Kochi: The Kerala High Court has upheld the state government’s decision to impose luxury tax on hospitals that provide rooms for patients at Rs 1,000 or more.

The tax was levied by introducing an amendment to Kerala Tax on Luxuries Act of 1976 through Kerala Finance Act of 2008, reports ToI.

Citing a Supreme Court decision of 2005 (Godfrey Phillips India Ltd Vs State of UP), the high court said an activity of indulgence or enjoyment that is costly or which is generally recognized as beyond the necessary requirements of an average number of society can be considered as luxury.

Dismissing the contention of the appellant (Rajah Healthy Acres) that Rs 1,000 is very meagre and would not qualify as a luxury, the court said it cannot meddle with the limit set by the legislature.

Categories: Hospitals, NEWS

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