Investors in South Sinai are demanding a moratorium for real estate taxes as an incentive for an already reeling tourism industry.
Atef Abdel-Latif, a member of the South Sinai and Marsa Alam Investors Association, called for the real estate tax to be halted for two years, arguing that the tourist industry is “already shackled with several taxes”.
The falling Russian ruble, the declining inflow of European tourists and the instability with regards to security has disabled hotels and resorts from sufficiently meeting their obligations, he said.
The proposed application of the tax on tourist facilities should be implemented “in a logical manner”, according to Abdel-Latif. “The debate is now to apply the real estate tax on the entire space of a resort or hotel, but it should be on buildings only, with the exception of staff accommodations, storehouses and electricity stations”.
The size of the tax should vary based on the hotel’s rating, he argued.
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