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TPSF and ATE met with Tourism Associations for the validation of 2019/2020 Budget proposals

Associations met in clusters to discuss and validate the tax issues that TPSF have on their table and what they are going to present in the parliamentary budget committee.

Tourism Associations that attended includes, TCT, HAT and TASOTA. Tax issues were discussed needed an elaboration of the issue itself, its current practise and its effects as well as proposed recommendation and benefits towards implementing what we propose.

HAT has proposed the following:

  • Consider VAT to be slightly % points lower in tourismĀ 
  • xemption procedures to encourage investors. Restructure TIC to make it functional, exemptions still do not work – and not clear role of new Investment Minister
  • Aggressive tax stimulation for tourism investment in under visited areas, Mkomazi, Selous, the new parks, saadani etc. etc.
  • integrate licences to one, e.g. hotel business licence which combines TALA, TFDA, BRELA and liquor licence etc., even if price is slightly higher it reduces admin burden
  • reduce employment taxes for lower paid jobs to lower entry barriersĀ 

It was brought to our attention (the few of us sitting on one table) that there might be a dialogue at the end of February, 27th, 28thand 01stMarch 2019 (Wednesday, Thursday and Friday), a big 3 days dialogue championed by the president and other eminent people like Warioba, Mwinyi and Mkapa will also attend to voice out issues and make him understand the challenges faced by the private sector (business people).  It is expected to be held in JNICC, TPSF to update us the details and invitation if so. 

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