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Cabo tourist tax to kick off in New Year

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taxNew year in Cabo will see the introduction of 2 new taxes – one for tourists, the other for Airbnb hosts. Both designed to raise funds for local infrastructure projects.

Firstly, the much-debated tourist tax is due to become a reality by end of March 2019. Arrangements on how to collect the controversial tax are now in their final stages. And it looks likely that the 350 peso tax will be collected by airlines at departure.

The tax has been controversial from the beginning and a lot of people are against it. Some service providers believe that tourists already contribute enough to the economy. And worry that the imposition of this tax will discourage visitors. 

However, the state government has promised that use of the funds will be completely transparent. And they will be held accountable for all spending. Essentially, the tax will be used as development lever. And 95% of the money will be used to fund social infrastructure projects like education, health, housing, lighting, and security.

At current exchange rates the tax could raise as much as $30 million US for BCS.  And whatever your view, at less than $18 per person, it’s hardly likely to make much of a dent in any tourist's budget. But overall it could make a huge difference to the health and education of kids here in Cabo.

Similarly, the 3% tax that is to be levied on Airbnb hosts will be put towards the same social infrastructure projects. And with over 6000 Airbnb registered properties around BCS, it is expected to raise almost $445,000 US in the first year.. What is less clear is how this tax will be collected. But indications are that it will be collected online.

But don’t worry, even if you have to pay a tourist tax, you can still afford to come stay with us at Los Milagros Hotel, our prices are great - from $70-$120 including all taxes.. Book now.

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