The Tourism Confederation of Portugal on Wednesday rejected a proposal by the municipalities to levy a local tax on revenues from lodging.
The Tourism Confederation of Portugal on Wednesday rejected a proposal by the municipalities to levy a local tax on revenues from lodging, styling it a “serious threat” to a sector that is one of the country’s largest export earners.
In a statement, the confederation said the proposal by the National Association of Portuguese Municipalities (ANMP) would not be productive in the current recession.
The secretary of state for tourism, Adolfo Mesquita Nunes, made a similar comment earlier this week, saying a levy would not be productive given the “special moment” faced by the economy.
The ANMP on 9 April proposed that between 50 cents and €1 be charged on overnight stays in a hotel or other lodging, arguing that this in itself “will not bring into question tourist activity” and that many European countries already have a similar tax. It has already sent sample tax regulations to its members, noting that it was up to each municipality whether to use them.
Associations representing the country’s hoteliers and restaurant owners have also criticised the proposal, accusing the municipalities of seeking to “sack” companies in the sector that are already facing steep declines in revenues.