Govt reconsiders 15% VAT on foreign tourists

via Govt reconsiders 15% VAT on foreign tourists – Southern Eye

THE government is considering scrapping the 15% value added tax (VAT) on accommodation and tourism services payments by foreign tourists which was supposed to be effected in March this year.

Southern Eye Business has it on good authority that tourism sector players are in talks with Finance and Economic Development minister Patrick Chinamasa who announced the pending levy on foreign tourists in his 2014 budget in December last year.

According to the recently-published Hansard — the Parliament official publication — Tourism and Hospitality minister Walter Mzembi said after receiving appeals from the tourism sector on the negative impact of the 15% VAT introduced in the budget, he was in discussion with Chinamasa.

“I received appeals from the sector that point to an otherwise negative impact on the performance of tourism should that policy measure proceed to implementation and have requested a central policy dialogue meeting between myself and the Finance and Economic Development minister, specifically to look at this issue of 15% tax on foreign arrivals,” said Mzembi.

Players in the tourism sector want the government to scrap the 15% VAT on payments for accommodation and tourism services by foreign visitors announced in the 2014 budget.

The industry players fear the introduction of the levy would hurt the tourism sector.

When the VAT system was introduced in 2003, the travel and tourism sector was recognised as an exporter, exempt from VAT on foreign visitors’ payments.

Its reintroduction is seen as retrogressive following gains made in the tourism sector since the formation of the coalition government in 2009.

The country’s tourism industry has been on a recovery path since dollarisation in 2009, a development that has seen the return of tourists from traditional markets such as the United Kingdom and the United States.

Zimbabwe recorded a 12% increase in tourist arrivals in the first half of the year to 859 995 compared to 767 393 registered in the same period the previous year.

 

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9 comments on “Govt reconsiders 15% VAT on foreign tourists
  1. mark longhurst says:

    Tax dollars get stolen by Zanu and mugarbage and never see the light of real peoples needs especially through the second tier corruption level of councils, ….so good thing to cancel this insidious tax especially when the tourist numbers are already falling because Zanu has destroyed the country and there is not much left to look at

  2. Jake says:

    Why does this industry still charge two rates for hotel rooms, for locals & for foreigners? That is a rip off from the Zim$ days. Tourists are not idiots, they will pay their hard earned cash to be ripped off.

  3. Daniel says:

    More tourists??Figures show most growth is from Africa and they do not spend a lot of money.Most on there way to S.A To look for work!!

  4. Tjingababili says:

    COMMONSENSE, AT LAST! ITS BETTER TO A SLOW LEARNER THAN A NON LEARNER AT ALL!

  5. Jane High says:

    Zimbabwe is already falling well behind regionally….our product is matched in every department by our near neighbours, Botswana, Malawi, Mozambique, Namibia, Zambia and South Africa. The only difference is that currently our facilities are inferior due to lack of investment and 15 years of steady decay. And we are already more expensive as a destination – GET REAL….Regionally we are just a pathetic shadow of our former selves. ALL DUE TO THE POLICIES OF THIS GOVERMENT – the greed, ignorance and short sighted thinking of our Political elite. Go on add 20% you idiots….why not 50%? Once you have killed your goose, get on and eat it, feathers and all!

  6. bam bam says:

    Yea just milk the tourist for a few more dollars before they even start returning to zim ,trouble is people are avoiding zim because … well its just not that good really anymore! let me explain its a really long flight with too many stops an entry visa is $60- $90 annd thats before you even get to deal wit the slowest rudest officials in the world then theres the poor roads infrastucture etc etc and you will probably get mugged or befriended by a self appointed guide that will be a cio or other government spy who will follow you around whilst you are harrassed by street vendors ooooh and the potholes

  7. Kubota Binga says:

    VISAz are expensive everywhere guys. Lets be real.

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