Flat rate tourist taxes a step closer

Perthshire could have a fixed charge option

The potential for Perthshire to charge a flat rate tourist tax increased this week after Ministers conceded that the proposed percentage-based levy would not work for all areas.

Visitor levies have become a controversial topic in tourism and hospitality, with Perth and Kinross Council currently consulting on whether to introduce one, here.

However, news at Holyrood this week could smooth the way for possible consensus after Public Finance Minister Ivan McKee disclosed that Scottish Government were now looking at the option of a flat rate charge.

Flexibility

When the Bill which allowed councils to set a Visitor levy was passed last year, it gave local authorities the latitude to set a percentage-based fee on an overnight stay.

That approach, though, was rejected by many tourism and accommodation bodies and was also reflected in the findings of our own recent Reader Survey.

Whilst 65% of our survey respondents said they opposed the imposition of a Tourist Tax in Perthshire, the majority (62%) said that, if a levy was to be introduced, they supported a flat rate fee rather than a percentage on an overnight stay.

That option, which aligns with some other schemes in Europe, could now be a step closer following news from the Scottish Parliament this week.

A new approach

Writing to the Convener of Holyrood’s Economy and Fair Work Committee, Mr McKee disclosed that Scottish Government were now exploring the appropriate legislative vehicle to make changes to the Bill.

“Ministers were aware that some areas of Scotland are seeking greater flexibility in how the levy is applied and administered. Consequently, we are now actively considering extending powers to local authorities, including the option to introduce a single flat rate or tiered flat rate model alongside the existing percentage-based approach,” he wrote.

The shift in direction was welcomed by The Association of Scotland’s Self-Caterers (ASSC).

CEO Fiona Campbell said it offered ‘clarity, fairness and simplicity’ while thanking Ministers for listening to industry concerns, albeit later than hoped.

Could it happen in Perthshire?

Ultimately, the decision on whether to opt for a flat rate approach would still be down to the local council, who are consulting on all options, including rejecting the levy altogether.

This week, Argyll and Bute Council decided to pause any scheme while Orkney decided not to pursue a Tourist Tax at this time. Shetland has rejected the idea of a Tourist Tax outright, with the Western Isles also pausing any potential charge.