The impact of taxation on the competitiveness of European tourism

first_imgPricewaterhouseCoopers (PwC) has published a report (188 pages) for the European Commission, entitled “The Impact of Taxes on the Competitiveness of European Tourism”.As they point out in their report, tourism is an important economic sector that makes a very significant contribution to the EU economy. Achieving growth in this increasingly competitive international market requires a supportive regulatory environment, and taxation is a key component of that.While on the one hand taxes directly affect the margins created by businesses and the prices faced by tourists, on the other hand they are an important source of revenue for Governments used to finance infrastructure and support the tourism sector. The aim of this study is to review the impact of the existing tax burden on the tourism sector at the national level in the EU-28.This includes compiling a database of current tourism-related taxes at national level in the EU and analyzing the effects of tourism taxes on the competitiveness of tourism enterprises. Empirical evidence from the study points to a strong case of tax cuts on tourists to improve the competitiveness of tourist destinations and support the local tourism sector. However, given the need to increase revenue on the one hand and the need to maintain competitiveness on the other, policymakers need to carefully design taxes to balance these conflicting goals.The document contains a complete overview and comparison of various benefits, from Income Tax, VAT and others to the amount of sojourn tax, for all EU countriesSide dish: The Impact of Taxes on the Competitiveness of European Tourismlast_img

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