Tanzania withdraws controversial tourism tax The Tanzanian government has announced that it will not be enforcing the proposed controversial tourism tax, which would have seen 18% VAT levied on a wide range of tourism products and services. The government decided to withdraw the controversial new tax from the National Budget after consultation with the Tourism Confederation of Tanzania. Moustafa Khataw, Chairman of the Tanzania Society of Travel Agents (TASOTA), has welcomed the decision. “In the last budget, besides an increase in tax on fuel as well as the introduction of a fuel levy for the Road Fund, there was the introduction of 18% VAT on tourism services. This would have had a very adverse effect on our tourism.” Khataw says inbound tour operators would undoubtedly have seen “massive cancellation of booked safaris and loss of future bookings as Tanzania would have become extremely uncompetitive”. Mustafa Akonaay, the Executive Secretary for the Tanzania Association of Tour Operators (TATO), said the proposed VAT on tourism products would have pushed travellers to other destinations offering more affordable safari options. He was quoted in local newspapers as saying: “It is high time state organisations realise that tourism products, including game viewing in national parks, luxury accommodation in tourists hotels and similar packages should be treated as ‘exports’; that is why we charge foreigners in dollars.” Dorine Reinstein/ Tourism Update
Posted on: Wed, 17 Jul 2013 05:20:14 +0000
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