Plans to allow councils to charge a tourist tax has passed its first legislative hurdle as a minister suggested the proposal could switch from a percentage to a flat charge.

The Visitor Levy (Scotland) Bill would allow local authorities to introduce a charge on overnight visitor stays, with the cash raised to be used to benefit tourists.

The legislation proposes the new levy would be a percentage of visitors’ accommodation costs, and would apply to those staying in hotels, hostels, bed and breakfasts, self-catering accommodation, campsites and caravan parks.

Wild campers and people in motorhomes and camper vans who pitch elsewhere would not be covered.

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The Scottish Government agreed to bring forward the legislation as part of a budget deal agreed with the Greens in 2019, but the Bill was delayed by the Covid pandemic.

SNP Public Finance Minister, Tom Arthur, told MSPs that a percentage of the price of a room offered “simplicity and proportionality”.

But he said that due to industry calls for a flat rate, he will hold talks with the sector and local government to investigate the best way forward.

He said: “We will engage with both local government and industry partners to consider this issue further and we will confirm the government’s position before stage two takes place.”

Mr Arthur added: “This bill is an important measure and if passed will give local authorities a significant new power.

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Twenty-one out of 27 EU countries have already some kind of visitor levy and they are commonplace in other locations throughout the world.

“I strongly believe that a visitor levy can be a force for good – supporting the visitor economy and bringing benefits to visitors, residents and businesses.”

But Scottish Conservative party chairman, Craig Hoy, warned “the government is passing bad laws with what will be damaging consequences”.

He added: “For many businesses, not just hotels and bed and breakfasts, this will undermine their opportunity to bounce back after thee Covid pandemic.

“There will be tourists who come to Scotland on a fixed budget and anything that will be taken off them in the form of this tax will not be spent, for example, in Scotland’s restaurants, cafés, hotels and bars.

“The issue here is that councils will be forced, I think, in many instances, to introduce this charge, because of the SNP’s austerity agenda. The Scottish Government is failing to fund our public services and our councils properly.”

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Scottish Greens finance spokesperson, Ross Greer, welcomed the legislation, which was delayed during the Covid pandemic, being pushed forward.

He said: “We’re incredibly fortunate that Scotland is such an attractive destination for tourists, whether from abroad, from the rest of the UK or our own residents choosing to explore and enjoy their own country for their holidays.

“The growth of our film and TV sector in recent years has resulted in a specific boost to tourist numbers in the various locations used by productions like Outlander and Star Wars. That’s great for our economy, especially in fragile rural communities - but it also puts huge pressure on those communities and on public services.”

“Tourism brings money into local economies but councils see very little benefit from that. It’s an entirely reasonable principle that the body providing public toilets, bin collections, leisure facilities and all sorts of other services which tourists make use of is able to recoup those costs. And it's only fair that local residents aren’t left picking up the bill.”

MSPs voted 86 to 30 in favour of the bill passing stage one of its passage through Holyrood.