Proposed tax could hurt Zambian tourism A proposed VAT charge on tourism could negatively affect tourism to Zambia. According to the Zambian budget review for 2014, subject to Parliamentary approval, the country could add a 16% VAT charge to all tourism activities, with effect from January 1. Grant Cummings, Owner of Chiawa Camp in the Lower Zambezi, said that while he supported government initiatives to raise funds, he was concerned about the possible impact on tourism. “We are worried about this tax and, like other safari operations in Zambia, have voiced our concerns to the authorities via our association,” he told eTNW. He added that the industry was engaging government at various levels. “Basic economic theory states, all other things being equal, that an increase in price will cause a decrease in demand,” warned Grant. He added that the proposed tax would increase the price of tourism in Zambia, and the country was already viewed as expensive. “With this sudden increase in price we would expect a resultant drop in demand that could result in some tourism operations scaling back, cutting jobs, postponing investment, cutting back on conservation activity and community support,” he said. In addition to the VAT charge, tourists travelling into Zambia by road may be subjected to a toll charge. According to a report on eTurboNews, national tolling on the country’s road ports of entry will start on November 1. Daan Brink, MD Livingstone Adventure, said that although the additional cost could be viewed as a barrier to entry, the Zambian government was in the process of carrying out massive infrastructure upgrades. “With that in mind in my opinion it is a good idea to raise funds that can be used for the sustainability of the road network in Zambia,” said Daan.
Posted on: Thu, 31 Oct 2013 05:07:00 +0000
Trending Topics
Recently Viewed Topics
© 2015