Tax on small tourist accommodations to go before parliament this week

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A controversial tax on all tourist accommodation which was set to be introduced last year but was delayed due to the Covid
pandemic is to come before Parliament next week.

The House of Representatives will convene next Thursday for first, second and third readings of a number of bills.

Among them is the Tourism Accommodation Levy Bill which will apply to hotels, guest houses, private villas and Airbnb rentals alike. It was previously slated to be charged at a rate of US $3 per guest per night, for room rates up to US $150 per

The new charge which had originally been scheduled to take effect from March 1 last year would help establish a Climate Resilience and Development Fund (CDR).

There have been fears that the tax will increase the cost of vacationing in the country deterring would-be visitors however government hopes to use the extra money to finance projects which will build climate resilience, and provide a buffer for public finances in times of natural disasters.

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