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Secretary of State calls for “rationalization” of the application of the tourist tax

During a luncheon debate hosted by the International Club of Portugal, Pedro Machado stated that “tourist taxes must have a rationale,” highlighting the issue of different municipalities imposing rates ranging from “one euro” to “four euros,” sometimes over “six months or nine months,” which he believes “should not be the case.”

Regarding the autonomy of municipalities in setting these taxes, the Secretary of State acknowledged that “while the State should not interfere in the administrative and financial autonomy of municipalities, it can, on the other hand, create regulations to rationalize the application of the tourist tax.”

Additionally, he emphasized that he disagrees with the notion that Portuguese workers commuting between places within the country for work should pay this tax.

On the sidelines of the debate, Pedro Machado explained to Lusa that he feels “the original spirit of the tax, created to offset the tourism footprint in territories, is often being distorted.”

“It’s in this distortion that I find similarities with other municipal taxes and fees, like the IMI, which already has national regulation,” he argued, suggesting that the tourist tax could follow a similar path.

When asked if the Government is already working on the issue, Pedro Machado simply responded: “It’s a concern of ours.”

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