Ida-Viru tourism objects VAT increase on accommodation

Saturday, April 22, 2023

In a joint appeal sent to the Prime Minister of Estonia KajaKallas (Reform) along with three government ministers, tourism sector officials in Ida-Viru County said that the strategic surge in VAT on lodging would put Estonia in an unsatisfactory place when compared to adjoining countries. The appeal mentions that a detailed impact study needs to be carried out prior to any application of tax increases.

As perofficials of the tourism sector in Ida-Viru County, a surge in VAT would mean Estonia losing out on both local and overseas tourists to adjoining countries.

KadriJalonen,Ida-Viru County tourism coordinator said that the enquiry for the government is,where will the local tourists go? Where would theoverseas tourists do if a room is charged €145 in their spas, and on the other hand €130 in Finland and €100 in Latvia? It’s, however, not just in spas. These charges are becoming uncompetitive even for less importantroom establishments, said Jalonen.

The government’s idea to increaselevy has already created a negative influence on the tourism segment.
TerjeRattur, the head of lodgingfacilities in Ida-Viru Countysaid that currently is the time to employ new workforces for the summer. People have been disheartenedto come to work in the tourism segment.

Possibly, the preliminaryharm, before anything has come into effect, already made its impact.

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