- 05 Jun 2023
- ICICI Securities
Wonderla Holidays to benefit from LBT waiver by Tamil Nadu government
WONDERLA - 981 Change: -14.50 (-1.46 %)News: The Tamil Nadu government has granted waiver of Local Body Tax (LBT) of 10% for 10 years from the commencement of commercial operations of Wonderla’s Chennai amusement park project. The company has been granted LBT waiver for a period of 10 years from the date of commencement of commercial operation subject to the condition that the commercial operation shall be commenced within two years from June 2, 2023.
Views: Wonderla had signed an MoU with the Tamil Nadu government to invest Rs 500 crore in the Chennai project in September 2015. The company acquired 60 acres of land in Chennai for the project in 2018. However as Tamil Nadu state government levies 10% LBT over and above the 18% GST, it led to Wonderla deferring the Chennai amusement park project and had appealed for waiver of the Local Body Tax. The current decision to waive off LBT would make Wonderla’s Chennai project more lucrative and also the company would be able to utilise the land it had acquired for the project.
Impact: Positive