| The Tax Barometer is composed of four trip elements:
lodging, car rental, meals, and airport arrival and departure. Each element of the
trip is priced according to a standard purchase by a hypothetical "WTTC
Traveler" in each destination.
This trip includes
the purchase of four nights' lodging, four days'
car rental, twelve meals, and one set of international arrival and departure
airport charges. Taxes imposed on these purchases are then
identified, recorded, and developed into a sector index. Next, these elements are
aggregated into a composite index for the destination, based on the average cost of each
element included in the standardized trip. If you would like more information on the
development of the Tax Barometer, please refer to our research methodology. |
 |
Rank |
|
Total tax $ for 5-day/4-night trip: |
$199.99 |
33 |
|
Percentage of total item cost: |
13.18% |
19 |
|
Overall tax index: |
87 |
3 |
The first item in the above table represents
the combined tax total
paid by the WTTC Traveler in each of the four sectors in
New Delhi. The second
item (percentage of total
item cost)
indicates what percentage of the total bill
is devoted to taxes.
The last item (overall tax index)
reflects the cumulative change in the amount
of tax paid in U.S. dollars between June 1994 and
June 2002.
The rankings show how
New Delhi compares with other Tax Barometer cities; a ranking of 1
is most competitive, while a ranking of 52 is least competitive.
Summary: New
Delhi currently has an
overall Tax Barometer index of 87,
indicating a 13%
decrease in
travel-related taxes since June 15, 1994,
the third greatest decrease among all 52 surveyed destinations.
This change can be
attributed to a significant reduction in the taxes paid on restaurant
meals, which helped offset increases in the car rental and air travel sectors. For a five-day, four-night trip to
New Delhi, travelers
can expect to pay approximately $200.00 in tourism-related taxes, a
total that ranks as the 20th highest among all
surveyed destinations. |
 |
Rank |
|
Average price for 4-day rental (mid-size) without taxes: |
$320.00 |
- |
|
Service tax: |
5.00% |
- |
|
Total charges for 4-day rental with taxes: |
$336.00 |
- |
|
Total tax $ for 4-day rental: |
$16.00 |
7 |
|
Percentage of total car rental cost: |
4.76% |
4 |
|
Car rental tax index: |
407 |
49 |
|
Summary:
Car rental taxes in New Delhi have increased 307% since 1994,
the second highest increase among all 52 surveyed destinations.
In the base index, the only applicable tax was an INR 2.00 per hour
fee, which amounted to INR 192.00 for a four day rental. This
tax was replaced in favor of a 5.0% service tax and a INR 5.00 per
hour fee in 1998. The index was lowered in 2001 when the INR
5.00 per hour fee was eliminated. Despite these increases, taxes
on car rentals remain low in comparison to other destinations. Visitors to
New Delhi can expect to pay around
$16.00 in taxes for a four-day mid-sized car rental, a total that ranks as the
seventh lowest among all surveyed destinations. |
 |
Rank |
|
Average price for 4-nights lodging without taxes: |
$760.02 |
- |
|
Luxury tax: |
10.00% |
|
|
Expenditure tax: |
10.00% |
- |
| Total
charges for 4-nights lodging with taxes: |
$912.03 |
- |
|
Total tax $ for four-nights: |
$152.01 |
50 |
|
Percentage of total hotel room cost: |
16.67% |
50 |
|
Hotel
tax index: |
100 |
8 |
(
in rank column indicates a tax decrease in Tax Barometer No. 11)
Summary: Hotel taxes have returned to
their base index level, following a brief period of higher rates.
The expenditure tax, levied at a rate of 20.00% in the inaugural
Barometer, was decreased to 10.00% for rooms costing over INR 4,000
per night. The luxury tax, formerly levied at 12.5%, is now
10.0%. Visitors can expect to pay around $152.00 in taxes
for four nights lodging, a total that ranks as the third highest among
all surveyed destinations. |
 |
Rank |
|
Average price for 12 restaurant meals
without taxes: |
$252.00 |
- |
|
Sales tax: |
7.00% |
- |
|
Total charges for 12 meals with taxes: |
$269.64 |
- |
|
Total tax $ for 12 meals: |
$17.64 |
17 |
|
Percentage of total restaurant meals cost: |
6.54% |
13 |
|
Restaurant tax index: |
26 |
2 |
Summary: Restaurant meal taxes have declined 74% in New
Delhi since 1994, the second highest decrease among any surveyed
destination. This change can be attributed to the elimination of the expenditure tax
in July 2002. This tax was levied at a rate of 20.00% in 1994.
Visitors can expect to pay around $18.00 in taxes for 12 restaurant
meals, a total that ranks as the 17th lowest among all surveyed
destinations. |
 |
Rank |
|
Foreign travel tax: |
INR 500.00 |
- |
|
International passenger service fee: |
INR 200.00 |
- |
|
Total tax $ for international arrival and departure: |
$14.34 |
20 |
|
Percentage of total trip cost: |
0.94% |
13 |
|
Air passenger tax index: |
234 |
44 |
Summary:
Taxes on international airline passengers have increased 134% in New
Delhi since 1994, the eighth highest increase among all surveyed
destinations. This change can be attributed to the introduction
of a new INR 200.00 passenger service fee in 2001. The index was
also affected by a INR 200.00 increase in the foreign travel tax that
occurred in 1998. The $14.34 in taxes levied on air passengers ranks as the
20th lowest among all 52 surveyed destinations. |
 |
|
Barometer No. 5:
The foreign travel
tax was increased from INR 300.00 to INR 750.00.
Barometer No. 6:
The foreign travel
tax was reduced from INR 750.00 to INR 500.00.
Barometer No. 8:
The car rental index was adjusted to reflect
a 5.0% service tax and an INR 5.00/hr fee
which is collected in place of a previously reported INR 500.00 tax.
Barometer No.
10:
The INR 5.00 per hour fee on car rentals was eliminated. In addition,
corrections were made to the lodging and restaurant indices; the
corrected tax rates reflect a 10.0% expenditure tax and a 10.0% luxury
tax in the lodging sector, and a 20.0% sales tax and 10.0% expenditure
tax for the restaurant sector. The corrections, coupled with
corrections in the base index, lower both indices. In the airline
sector, a new INR 200.00 international passenger service fee was
introduced on 4-1-01.
Barometer No. 11:
The luxury tax on
hotel rooms was lowered from 12.5% to 10.0% and the 10.0% expenditure
tax on restaurant meals was eliminated on July 1, 2002.
|
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