The national tourism sector is in suspense, because the implementation of the Value Added Tax (VAT) would eliminate key incentives that these companies need to carry out their activities, according to an interpretation they received from Taxation.
According to the director of Taxation, Giovanni Tencio, whose words are echoed by the tourism sector with concern, the VAT eliminates the sales law and, therefore, the exonerations of the Law of Incentives for Tourism Development are “implicitly” repealed.
The tourism incentives law establishes that they will not have to pay the 13% tax on sales, the initial investment to acquire essential items and materials for the construction of new hotel projects.
That is to say, the complaint is that with the change of regime the development of tourist activities will become more expensive.
When the fiscal plan was approved, it was established that the tourism sector would have a staggered rate: it would be exempt the first year and pay 4% the second year, 8% the third and 13% in the fourth year.