Tanzania tax increases hit tourists hard

Posted on July 20, 2016

Tanzania has recently introduced an 18% Value-added tax (VAT) on tourism services , including ground transportation, tour guides, parks fees and camping fees. Hotel fees are not affected, as these are already subject to VAT.

Tour operators and other tourism stakeholders have appealed the government to repeal the tax, so far to deaf ears. Both Kenya and Zimbabwe issued new taxes on tourism recently, only to scrap them after realizing how badly these affects tourism. Thanks to internet, tourists today are more price-sensitive than ever, and will easily change their destination in favour of a cheaper option. Kenya’s recovering tourism will certainly benefit of new taxes in their southern neighbor.

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