January deadline set for Zim tourism VAT

THE dreaded 15% Value
Added Tax on payments
for accommodation
and tourism services by
foreign visitors to Zimbabwe
will become a reality from
January 2015. This was
announced during the
African Sun breakfast in the
presence of tourism minister,
Walter Mzembi, at Indaba
this month.
Dr Shingi Munyeza,
African Sun ceo, said it was
good news that a position
had been reached on the
implementation date, as now
the tourism industry could
plan for it accordingly. He
added that members of the
trade recognised that it was
unsustainable for the country
not to implement VAT.
However, Shingi said he
would continue to appeal
to finance minister, Patrick
Chinamasa, to extend the
VAT deadline to give the
tourism industry more time
to recover from the financial
crisis.
Emmanuel Fundira,
group ce of Astoc Leisure
Group, said talks with the
government were ongoing
about the best timeframe for
the implementation of the
tax. He said an option of a
more gradual implementation
of the tax was being
discussed.
Earlier this year, Francis
Ngwenya, Zimbabwe Council
for Tourism president, said
an extra 15% on prices would
be extremely disruptive and
detrimental to the industry,
and would almost certainly
stop growth in its tracks.
Francis explained in a letter
to the minister of tourism
that the Zimbabwe industry
was still very fragile and
needed a minimum of five
years to recover.