ECONOMY

Holiday levy plans outrage professionals

The possibility that a new luxury tax or “holiday” tax could be introduced drew a strong reaction on Tuesday from the Association of Hellenic Tourism Enterprises (SETE), which instead proposed the adoption of a series of measures to bring revenues of 500 million euros into the state coffers.

SETE conceded that a similar tax does exist at rival destinations, but that it is paid to local authorities for the strengthening of resources for the supply of quality tourism services. There is no precedent of such a tax being paid to the state. In this country, SETE added, there is such a levy on tourism accommodation that is paid to the local authorities.

The association went on to recommend to the competent ministries various measures that could have multiple benefits for state coffers. It added that the state authorities must immediately begin inspections on illegal accommodation units and force all enterprises to pay the income tax, value-added tax and social security contributions due. Salary payments should also be made through banks as a rule, SETE proposed.