Turkey's ruling party to change draft law on tourism taxes after objections

Ruling Justice and Development Party (AKP) government plans to revise a new draft law that levies accommodation taxes based on the type of the business, Hürriyet daily reported on Thursday.

In the current version, visitors would be charged on a per person basis, with the costs determined by how many stars the hotel has, from 6 ($1) to18 liras ($3.20) per night.

However, the authorities decided to revise the draft by changing the tax regime from preset rates to two percent of the daily accommodation price after objections from Turkish hoteliers, saying that it would severely affect domestic tourism, Hürriyet said.

Mid-tier hoteliers earlier said the new law would damage domestic tourism since the tax rates mentioned in the current draft amounts to some 30 percent of the daily rate for hostels and three-star hotels, which serve the majority of Turkish customers.