Tax Policy Guidelines

In order to assist decision-makers in developing sound Travel & Tourism tax policy, the World Travel & Tourism Tax Policy Center has developed the following guidelines for taxing the world’s largest industry.
 

World Travel & Tourism Tax Policy Guidelines

• Tax officials should compile a complete picture of individual Travel & Tourism taxes and add-on charges, and compare this level with other strategic economic development priorities.

• The Travel & Tourism private sector should be an active participant in the formulation of tax policies effecting the industry.  Policy-makers should seek input from the industry when considering any tax or fee on Travel & Tourism services, products or consumers.

• Taxes that directly inhibit the competitiveness and vitality of Travel & Tourism should be avoided. Consultation with the Travel & Tourism industry can help policymakers raise the needed revenue while sustaining the employment and revenue base of the industry.

• Policymakers should apply the same standards to Travel & Tourism exports that are applied to manufactured goods.  International Travel & Tourism is essentially an export industry.  Taxing inbound travel is equivalent to taxing an export product.

• Growing the Travel & Tourism tax base should have priority over raising tax rates.  Sustainable economic growth in the industry will yield increased public revenues if taxes do not hinder market processes.

• Travel & Tourism development policy must be consistent and synchronized with fiscal policy.  This requires an examination of the tax vehicles utilized across all sectors comprising the Travel & Tourism industry.

• Travel & Tourism taxes should be easily administered and collected.  Imposing taxes that are difficult to administer and collect results in increased costs to government and industry, negating or reducing net proceeds to both entities.

• Education and research into the effects of Travel & Tourism taxes should be encouraged.  Many policymakers are not familiar with the scope and economic power of Travel & Tourism.  Every effort should be made to familiarize policymakers with the realities of Travel & Tourism tax economies.   The research agenda outlined in this report attempts to highlight critical research needs.

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Issues in Tax Policy 

• Foreword/Preface
• Economics of Travel & Tourism Taxes
• Tax Theory
• Principles of Intelligent Taxation
• Key Issues in Travel & Tourism Development
• Tax Policy Guidelines
• Global Forces Shaping International Tax Policies
• Travel & Tourism Taxes: A Reference Guide
• References

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