The Hospitality Association of Portugal has challenging the creation of a municipal tourist tax, just one of the measures presented by the Commission on the Reform of Green Taxation.
The Hospitality Association’s Luis Veiga, said any such fee “will not foster entrepreneurship or job creation, nor will help to encourage behavior that promotes good environmental practices.”
Luis Veiga added that the rising cost of staying in Portugal means “tourists will opt for other competing destinations, as is Spain where only Barcelona and the ski resort of Baqueira-Beret charge a tourist tax.”
"What this bill proposes for the tourism sector has nothing to do with environmental issues. This is a false argument. It is just a way for broke councils to get tourists to help fund their day to day running costs," said Viega who has said the hitherto un-sayable i.e. that councils will use any tourist tax money for their general funding rather than for any green projects.
The hotels employers’ association claims that since 2012, “we have been fighting, even in court, against the alleged imposition of tourist taxes, which are no more than taxes that municipalities will use to fill their financial gaps.”
The Hospitality Association of Portugal therefore considers that this tourist tax does nothing to reduce environmental impact, the hoteliers have to as when tourism projects are licensed the promoter has to bear the costs of eco-compliant infrastructure such as water and sanitation systems.
Another proposal contained in the Reform of Green Taxation bill is the recommendation that a charge per passenger is imposed at airports.
More sensible points in the bill is the resurrection of the old car scrappage scheme, discounts on new, electric or hybrid cars, a tax on plastic bags and tax benefits for those purchasing a bicycle.
There are 40 concrete measures and 26 general recommendations which aims to put in place tax measures to encourage good environmental practices.
It is also suggested extending car tax exemptions for hybrid vehicles those running on LPG.
One major change is the proposal that those using public transport can deduct this cost from their tax bills.
The Commission also wants higher car tax rates depending on CO2 emissions, congestion charges in more cities and taxing diesel and petrol at the same rates.
Another curious proposal is to raise the council tax/rates on buildings that have been vacant for over a year, and to raise the rates on agricultural land and forest areas in a state of abandonment.
After the consultation period, the Commission will deliver the final draft of the bill to the Government.
