Vienna Chamber of Commerce Against Increase in Local Tax

Currently, the local tax is at 3.2 percent and is set to be increased to 8.5 percent with the local tax increase in December. Finance City Councillor Barbara Novak (SPÖ) justified the step, among other things, with the arising costs for the city's infrastructure.

President of the Vienna Chamber of Commerce sees no reason for a local tax increase

Vienna Tourism has a budget of 33.4 million euros for this year, while the city of Vienna's revenue from the local tax was 42 million euros last year, Ruck stated in a release. "The planned additional revenue is apparently not being used for tourism." Furthermore, revenue from the local tax would increase anyway because inflation development is factored into the calculation. "If room prices rise, revenue from the local tax also rises. The inflation adjustment is therefore automatic and permanent and is not necessary separately," Ruck said.

Tourism industry representatives criticize local tax increase

Criticism came again from the Austrian Hotel Association (ÖHV). They fear "an unimaginable effort behind the scenes." Furthermore, it is unclear what will specifically apply from December. There is no information about the new "key figure" for calculating the local tax, who will bear the costs for already concluded contracts, or - "even more complicated" - if payment has already been made, "in the worst case" via a platform. "The major booking portals are letting the hotels run. This will become a fiasco," said ÖHV President Walter Veit.

Meanwhile, the hotel industry association in the WKÖ warns of a "copycat offensive" in the federal states. Should this occur, "nationwide price pressure, which the hotel industry certainly does not have to be responsible for," threatens, emphasized Chairman Georg Imlauer in a statement. Due to strained municipal budgets, an increase in the local tax has recently been a topic - also in other federal states.

(APA/Red)

This article has been automatically translated, read the original article here.