The Telangana state government threw a shocker towards the organizers of New Year parties by instructing them to pay 20 percent extra tax for the celebratory parties on the eve of this new year.
The Telangana Commissioner of Commercial Taxes announced that government has decided to charge 20 percent entertainment tax on the New Year parties to be organized in the city limits. Through advert, a message has been sent that the New Year celebrations will come under the commercial tax category so 20 percent extra tax must be paid.
He also suggested the party organizers to contact the commercial tax department to register their events. All star hotels and pubs need to pay this entertainment tax without fail or penal action will be levied. The permission would be granted only after the payment of this entertainment tax.
This decision of government has shocked the organizers and the burden will be passed to the common man. Apart from food tax and liquor tax, now this additional tax will have to be paid to celebrate New Year in any pub or restaurant.
Hyderabad is the second city after Mumbai to charge entertainment tax for New Year parties.
