A proposed state budget approved Wednesday by Cape Verde’s parliament includes the introduction of a tourism tax of 220 escudos (2 euros) per night, as of May 2013, the cape Verdean press reported.
The Budget, which was approved by the African Party for the Independence of Cape Verde (PAICV), which has been in power since 2001, and all opposition parties voted against, also sets Value Added Tax (IVA) to 15 percent as of 1 January.
The State Budget proposal outlines spending of 60.4 billion Cape Verdean escudos (548 million euros, or 3.3 million euros more than in 2012) and revenue of 47.3 billion escudos (429 million euros, or 6.6 million euros more than last year).
The budget deficit and execution of the Public Investment Programme, totalling 25.9 billion escudos (234 million euros, or 14.6 percent of GDP), will be covered by a long term, low interest subsidised loan.
The budget proposal points to a deficit of 7.4 percent of GDP (expected 9.8 percent this year), with public debt expected to hit 90 percent of GDP. (macauhub)