The regular visitors of Republic of Lagrangia will be aware of our opposition toward income taxes, and instead we advocate the raise of public revenue through the lease of land and radio spectrum frequencies. Additionally we have argued in favour of so-called health taxes on sugar, soda, salt, fat to partially fund a universal single-payer healthcare system (and to reduce the amount of unhealthy ingredients in food).
Mordan citizens and permanent residents will enjoy both free healthcare as well free public transport, which they have paid for through the LVT. However, foreign tourists will also made use of these particular services. It seems reasonable to us if tourists will also contribute to these services. The question is how they can do this.
In the Netherlands there’s a local tax called tourist tax (toeristenbelasting), which local governments are allowed to levy upon tourists from outside their jurisdiction (both domestic and foreign). Usually this tax is charged per night spend at an ad valorem base. If a hotel charge 100 per night, and a tourist has to pay a 5% tourist tax, he will have to pay 105 to the hotels, which will turn 5 to the local government.
We propose to introduce a similar scheme, but with several adaptations. First our tourist tax will be collected by the federal government rather than by local governments. Hence there will be a uniform tariff throughout the nation (in the Netherlands local governments are not obliged to charge tourist tax). Second in our system the tax will only be charged onto foreign tourists, not on domestic ones.