A PROPOSED 18% VAT
on tourism services in
Tanzania works against
the government’s goal of
increasing tourist numbers
to two million in 2017,
industry experts say.
Sirili Akko, executive
secretary of the Tanzania
Association of Tour
Operators, said the country’s
Finance Minister, Dr Philip
Mpango, had proposed an
18% VAT charge on tourist
services in his recent
budget, with effect from
July 1.
Tourism services that could
be taxed include supplies
of tourist guiding services,
game drives, water safaris,
animal or bird watching, park
entrance fees, and ground
transportation services.
Wilbard Chambulo, md of
Kibo Guides and Tanganyika
Wilderness Camps, said
Kenya had introduced 16%
VAT on tourism in 2015/16
and failed.
“Tanzania should avoid the
same mistake, otherwise our
neighbours will capitalise
and have a free ride on our
mistakes,” added Sirili.
Wilbard said the VAT
would negatively impact the
tourism industry and also
pointed out that the July
deadline did not allow time
to implement the charge and
asked who would bear the
extra cost.
Tourism VAT a threat for Tanzania
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