The Chamber of Tourism raised in a meeting with the president Luis Lacalle Pou the possibility of enabling VAT zero rate for both foreign tourists and residents in the season that is approaching in Uruguay, and about which there are concerns in the sector about how it could affect the exchange difference with Argentina and the economic situation of the neighboring country.
The precedent is set: last season, continuing with the measures to help recovery In one of the sectors hardest hit by the Covid-19 pandemic —for which it was very difficult to get back on its feet after the health crisis—, the zero VAT rate for tourists was one of the initiatives that were implemented to attract tourists visitors, mostly from other countries —although it also ended up being applied to residents.
Now the Chamber of Tourism He requested, among other demands, that this measure be in force again during the season, which is no longer dragging the effects of the pandemic so much, but of the Argentine economy.
In the case of foreigners, the aim is to have an attraction for when Uruguay go looking for tourists to other parts of the world, explained the president of the Chamber, Quarry Marina. So that “we have a strong speech of Come to Uruguay, Uruguay does not charge VAT. I think it is essential for the new season”, he pointed out to Underlined.
“And for the residents, we believe that it is important, even for a year, to be able to propose that Uruguayan tourists do not have VAT on tourist consumption to encourage domestic tourismwhich I think is one of the factors that have been supporting the sector,” said Cantera.
This last point could be key to making a difference internally, as it has been seen that many Uruguayans have chosen to vacation in the last opportunities of the year —winter vacations and long weekends— in the neighboring country, due to the price gap which favors the local exchange rate.
More holidays?
With the aim of continuing to promote tourism in the country, especially internal tourism, the Chamber of Tourism also proposed create more holidays that allow Uruguayans to tour the country on different occasions throughout the year. In this regard, the president of the union, Cantera, maintained that the idea is boost the tourism sector so that his recovery can be achieved.
The relevant portfolio holder, Tabare Viera, Meanwhile, he pointed out that the idea is welcome, but that “it is not easy.” “You have to take into account all the activity of the country that it could also be affected by more holidays, not to mention the school sector that is clamoring for more school days,” said the minister.
Source: Ambito
