With local hotels expected to rake in big bucks during the
F1 season, a special tax will be imposed during the period
to help the Government defray the cost of staging the race
here.
Minister of State for Trade and Industry S Iswaran said the
Government will impose an F1 tax of "no more than 30 per
cent" on hotel room revenues for about seven days around the
race period.
In Monaco and Melbourne, hotels are near full occupancy
during the F1 season and are known to raise their room rates
by up to two or three times.
We expect hotels in Singapore to benefit similarly and we
need our hotels to contribute their fair share," Mr Iswaran
said.
The F1 tax, which will be imposed for about seven days
around the race period, will be tiered so that track-side
hotels, which will benefit the most with the increase in
room rates, will pay a higher rate and those further away
will pay a lower one.
"We are looking at a cess of no more than 30 per cent to
ensure that hoteliers still keep a significant share of the
upside whilst making a meaningful contribution," the
minister said.
The F1 tax on hotels is expected to raise an average of
about $15 million to $20 million per year.
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