Tanzania withdraws proposed tourism tax

2013-07-17 11:26

Dar es Salaam - The Tanzanian government has announced that it will not be enforcing the proposed controversial tourism tax, which would have seen 18% VAT levied on a wide range of tourism products and services.

Tourism Update reports that the government decided to withdraw the controversial new tax from the National Budget after consultation with the Tourism Confederation of Tanzania. 

Moustafa Khataw, Chairman of the Tanzania Society of Travel Agents (TASOTA) welcomed the decision saying that the 18% VAT levy would have had a very adverse effect on the country's tourism. Khataw says inbound tour operators would undoubtedly have seen "massive cancellation of booked safaris and loss of future bookings as Tanzania would have become extremely uncompetitive".

Mustafa Akonaay, the Executive Secretary for the Tanzania Association of Tour Operators (TATO), said the proposed VAT on tourism products would have pushed travellers to other destinations offering more affordable safari options. 

Read more on:    travel international

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