ACTA comments on harmonization of lodging taxes in QC

According to recent reports, the government of Québec is set to harmonize its lodging tax to improve tourism promotion within the province.

Minister Philippe Couillard stated, "We need to have campaigns to attract tourists here, better coordination. We have no consistent message to sell Québec abroad. Everyone has their own side, then this is not the most effective way."

Harmonization is expected to be set at 3.5% in addition to the GST and QST. The tax therefore will rise in regions where it is currently below 3.5%. Through harmonization, the government is projecting to generate an additional $10 million to promote the province.

ACTA recognizes the need for the revenue generation in order to promote tourism and that through harmonization, a level playing field will be set. Our concern is not so much the amount being collected but the fact that the monies will be managed by a private firm. A private firm comes with a stigma of biases and lack of understanding of the industry in which they manage. ACTA feels that the regional tourism associations are the most qualified to determine their promotional needs. We sincerely hope that monies will be allocated fairly and that ALL regions of Québec benefit equally from the new found wealth. For this we will keep a watchful eye and share our views in the form of a letter to the minister.

Also reported was the Québec government consideration of a new 0.5% tax on all-inclusive vacation packages abroad. It was believed that the tax on foreign trips would be gradually applied by wholesalers: $2 to $5 for every purchase of $ 1,000.  To this report Philippe Couillard confirmed, "There is no question that this is a scenario that was presented but will not be implemented".

It was believed that this tax would of generated over $ 7 million to the state, but was agreed to have a negative impact on the families of the middle class. ACTA applauds the minister for recognizing the negative impact the new tax would have placed on consumers in the province of Québec.