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Tanzania and VAT
In its budget deliberations, the Tanzanian Government is planning to remove the long-established VAT exemption for a number of tourism related services including air charters, tour guiding, and possibly even Park and Wildlife Fees, Camping Fees and Concession fees. The VAT rate is 18% so this move could increase the cost of a holiday in Tanzania by up to 18% depending on the mix of previously exempt elements, though 6-10% is more likely on an average safari itinerary.
It is not yet known when the implementation date will be, it may be as early as 1st July 2014.
This could have a damaging impact on the tourism industry in Tanzania so Atta, along with the industry association in Tanzania, are lobbying hard this week to try to stop, delay or reduce the immediate impact of this regressive step.
Agents with questions should contact their ground handlers in Tanzania for details on how they plan to handle this change and Atta will keep you informed of developments on the ground in Tanzania.
By John Corse, Nomad Tanzania, Atta East African Director