HILAIRE QUESTIONS WHO’S REALLY BENEFITING FROM NEW HOTEL TAX

Castries South MP Dr. Ernest Hilaire says there is questioning who the real beneficiaries of a new
head tax for visitors will be. He was responding to the announcement made by Tourism Minister
Dominic Fedee at a press briefing on Monday
On Monday Tourism Minister Dominic Fedee informed that April 1 st 2020 is the deadline for
implementing an accommodation tax for visitors. Hotels generating a revenue of US 120 dollars per
person per night or less will collect a tax of US 3 dollars per head per night. Hotels generating more
revenue will impose a fee of US 6 dollars per head per night
The VAT ratio for the hotels will be reduced from 10 to 7%
But who’s benefiting from the increases? Castries South MP Dr. Ernest Hilaire says there’s nothing
to suggest that the average worker is. He says while the head tax will be passed on to the guests
while the 3% VAT reduction will reduce operating costs to the hotels employees salaries remain the
same
In Dr. Hilaire’s estimation the hotel employees will not benefit from either the head tax or the hotels
reduced operating cost

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