Brazil plans to go ahead and tax Airbnb rentals ahead of the 2016 Olympic Games in Rio de Janeiro.
State tourism agency Embratur has been in talks with the home-rental platform to levy accommodation taxes on registered Airbnb hosts.
"It will be a fair tax that will not be passed on to consumers or ruin business," said Jose Gayoso, aide to Embratur chief Vinicius Lummertz.
The tax rate and whether it would be paid to the national or state governments is still to be worked out, he said.
Gayoso said Airbnb hosts helped ensure there was a sufficient supply of accommodations as demand outstripped supply for traditional hotels during 2014’s FIFA World Cup tournament.
The country has introduced a spate of new taxes to plug a growing economic deficit after years of relative prosperity.
Airbnb had already agreed a contract with Olympic organizers to provide a minimum of 20,000 rooms during the Olympic Games.
