Scotland's tourist tax law to come into force this month as Edinburgh expected to be first to introduce levy

A law allowing local authorities to implement a tourist tax will come into force later this month.

The Scottish Government confirmed the commencement date of the Visitor Levy (Scotland) Act will be September 20.

It will give councils the power to add charges to stays at hotels and B&Bs.

Edinburgh, Highland and Aberdeen councils are all considering moves to implement the measure.

Edinburgh Council leader Cammy Day said a levy could raise £50m a year for the city.

Welcoming the news, he said a consultation on the policy will be launched in the coming weeks.

“This is a once in a generation opportunity for Edinburgh and I’m pleased to see the Government move quickly on this,” the Labour councillor said.

“We’re looking forward to harnessing the opportunities the new legislation will bring.

“Since the Visitor Levy Scotland Bill became an Act on July 5, we’ve been working on our plans to run a widescale public consultation that will seek views on our draft scheme.

“We’ve spent many years designing a scheme that works for our city, and we’ve published details of our plans for a 5% levy on overnight stays.”

Day said the charge could raise up to £50m a year for the council which would “present a welcome and innovative way of sustaining” the city’s tourism sector.

He added: “I’m looking forward to people from all over the city, and the world, sharing their views.”

The City of Edinburgh Council will launch a formal 12-week public consultation on a draft visitor levy scheme shortly after the Visitor Levy (Scotland) Act commences on September 20.

It’s expected the scheme could be introduced in 2026.