Safari operators, through their Arusha-based Tanzania Association of Tour Operators, have decried the government move to slap Value Added Tax (VAT) on tourism products. “It is high time state organs realized 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,” stated the TATO Executive Secretary, Mr Mustafa Akonaay.
Mr Akonaay said it was wrong to impose VAT on goods meant for export, including tourist services, pointing out that usually tourists do not take anything out of the country; they just come to gaze at wildlife and leave.
The TATO executive warned that VAT on tourism products will make Tanzania a very expensive destination and foreigners may start opting for other countries where prices for safaris are much cheaper.
Tourism-related segments that will be subject to Value Added Tax include tour guided game viewing, water and sea sports, animal and bird watching, accommodation, park fees, tourist chatter services, ground transport or transit services.
For the operators, however, the move will make the Tanzania tourism Industry to be hard hit, making the destination uncompetitive.
The Deputy Minister for Natural Resources and Tourism , Mr Lazaro Nyalandu, reacting to the operators’ concern, said here recently that the VAT issue was still open for debate and suggestions from players in the industry.
“Ours is a democratic country and the issue can be tabled for discussions,” said Mr Nyalandu, adding that he was aware that Tanzania was an expensive destination already even before VAT was slammed on the industry.
Daily News
