Municipalities question proposed tourist tax

Municipalities are voicing doubts about a proposed tourist tax, Yle reports.

The draft government proposal, currently open for consultation, has been criticised for potentially weakening tourism competitiveness and for lacking sufficient impact assessments.

At worst, the tax could increase accommodation costs and reduce demand for lodging in some areas, critics fear.

The draft legislation would allow municipalities to introduce a voluntary tourist tax to generate additional revenue.

Tourist taxes are already used in several European Union countries and are typically charged in connection with short-term accommodation.