Vancouver seeks 2.5% tax on short-term accommodation to raise revenue for hosting FIFA World Cup games


Booking a room in a Vancouver lodge may quickly include an extra 2.5 per cent tax as the town seeks to raise revenue to host games for the 2026 FIFA World Cup. 

The metropolis requested the provincial authorities on Sept. 30 to apply a brief Major Events Municipal and Regional District Tax (MRDT) on gross sales of short-term accommodation within the years main up to the event to assist fund additional workers, safety and resourcing, and event-specific issues like coaching websites and a “Fan Fest” space.

The MRDT modification to the Provincial Sales Tax Act has been launched within the B.C. Legislature and can now be carried to a second studying.

The City of Vancouver declined an interview with CBC, however in a press release, it stated it should have to run at “above and past regular working metropolis service ranges” for the World Cup. 

“The City of Vancouver is working with the province on how the MRDT could possibly be utilized inside the metropolis, and additional particulars shall be made public as the method is set,” it stated.

Vancouver and Toronto are amongst 16 host cities in North America for the event and can host 10 of the occasion’s 70 matches between them.

The specifics of the tax, comparable to when will probably be carried out in Vancouver and for how lengthy, have but to be decided.

Communities can apply for a Major Events MRDT via Destination B.C. to get assist and approval from the ministers of tourism and finance. 

The Major Events MRDT is a limited-time tax of up to 2.5 per cent on motels and short-term lodging. It might be utilized on high of an current MRDT — already in place in additional than 60 areas within the province — that communities can use to present funding for tourism advertising and marketing, packages and initiatives. 

But including taxes on high of taxes is a regarding step for some.

“You have to watch out in regards to the layer of taxation that you just begin to layer on issues,” stated Peter Milobar, B.C. Liberal MLA for Kamloops–North Thompson, including there are nonetheless loads of questions to decide the factors of which communities may apply.

B.C. Minister of Finance Selina Robinson says a brief further tax is just not a brand new idea, citing the 4 per cent Resort Area Tax launched in Whistler in 2007 to assist the municipality foot the prices of the 2010 Winter Olympics.

“We see the potential advantages for different communities which are working to put B.C. on the worldwide stage and bolster our economic system,” stated Robinson. 

The B.C. Hotel Association declined to remark.


Please enter your comment!
Please enter your name here