Operators cry foul over VAT on tourism products in Dar
Tourists at a park in Tanzania. PHOTO | FILE
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The authorities running wildlife parks have reviewed the entry fees for tourists and tour operators starting this month amid protests by stakeholders that the decision will adversely affect their businesses.
TANZANIA’S TOURISM stakeholders fear that they may lose business to other African destinations following the government’s decision to impose taxes on their services.
The authorities running wildlife parks have reviewed the entry fees for tourists and tour operators starting this month amid protests by stakeholders that the decision will adversely affect their businesses.
In a public notice, the Tanzania National Parks says, “The Management of Tanzania National Parks would like to inform all our esteemed customers that, the Finance Act 2016 has withdrawn exemptions of VAT in tourism services. The parks’ management will start charging VAT at 18 per cent in all tourism services and products in the National Parks.”
Previously, park entry fees ranged between $30 and $100 in three categories of the parks: premium, gold and silver.
Premium parks are the Serengeti National Park in northern Tanzania where a foreign tourist has to pay $60 per day, Mount Kilimanjaro ($70), Gombe and Mahale chimpanzee parks in western Tanzania where a tourist daily fee is $100 and $80 respectively. Now an 18 per cent VAT has been added to the fees.
Gold parks are the Tarangire, Arusha and Lake Manyara; all in Northern Tanzania where foreign visitors pay $45 per day plus VAT.
Silver parks are located on the Southern Tanzania tourist circuit and Lake Victoria. Foreign visitors to these parks have been paying a daily fee of $30, but will now will be charged VAT on top of the quoted amount.
VAT has also been imposed on other tourism services offered inside the parks, including accommodation, beverage and vehicle movements.
Tanzania Association of Tour Operators executive secretary Sirili Akko said in a statement that the VAT charges on the tourism industry would be counterproductive and will hamper the growth of the sector, which contributes to nearly 17 per cent of Tanzania’s economy.
Mr Akko warned that there will be consequences across the economy as a result of the new tax on tourism products.
“Charging VAT on tourist services will make Tanzania expensive and put the Tanzanian tourism industry in a disadvantaged position due to regional and international parities,” Mr Akko said in the statement.
“This works against the government goal of increasing tourist numbers to 2 million in 2017. It is also worth noting that so far Tanzania is still below the target in 2016 in comparison with the 2013 and 2014 tourists’ numbers”, he added.
