The Hellenic Hoteliers Chamber called for scrapping of new hotel tax bill tabled by the Greek government, pointing out that its implementation will cause a loss of 6.174 jobs and a decline in state revenues by €435 million.
The conclusions are derived from a relevant Grant Thornton study on the consequences of the new tax which is already included in the 2018 Greek State Preliminary Draft Budget.
The study is entitled: “Hotel tax impact asssessment study” and reports that the Greek State revenue gain is estimated annually at 84 million euros, which can be extended through public investment to generate a positive contribution of 94 million.
At the same time, however, Grant Thornton highlights that, ultimately, the losses in the economy from the application of this tax will reach €340 million, effectively cancelling any fiscal benefits, since the imposition of the tax is estimated to result in an average room price increase of 1.9%, causing a drop in demand that will lead to a 2.5% reduction in the overall turnover generated by hotels.
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