Welsh visitor levy must be consistent and simple to administer

Simple administration for businesses who oversee a Welsh discretionary visitor levy and clear communications for visitors and residents about its purpose will be vital if the Welsh government’s proposals to implement such a tax are to succeed says the Chartered Institute of Taxation.

Responding to a Welsh government consultation on the charge the institute highlights some challenges it could bring such as administrative burdens for businesses and concerns about inconsistencies or distortions in applying the levy to overnight visitors but not to those visiting Wales just for the day. It notes that costs such as those relating to traffic congestion public transport parking and rubbish collection apply equally to day and overnight visitors.

The CIOT says the levy should be formal evaluated against the Welsh government’s core tax principles and stresses the importance of clarity regarding how the money raised is...