Sri Lanka’s government will set up a common booking platform for hotels in the country in place of international booking engines, Finance Minister Ravi Karunanayake said.
Booking engines such as Agoda and Airbnb does not pay any taxes in Sri Lanka he said.
The government will set up a common booking platform in discussions with the hotel industry, he said.
The government hopes to collect 25 billion rupees from the move, the budget speech said.
Booking engines such as Agoda already collects Sri Lanka turnover taxes including VAT, which are among the highest in Asia and presumably remits it back to the hotel.
Sri Lanka’s large hotels who have been feeling the heat of competition from start-up and small and medium business have been pressing the government restrict the marketing clout of small hotels though international booking engines.
This article originally appears on economynext.