Zimbabwe tourism sector urges delay to VAT changes
Zimbabwe’s tourism industry has called on Government to review or defer the newly introduced 15.5% VAT on tourism activities and transfers, effective 1 January 2026, warning it jeopardises already contracted international bookings. The levy – introduced in the 2026 National Budget and Draft Finance Bill HB 14 of 2025 – shifts previously zero‑rated services such as transfers, cruises, safaris and adventure activities to standard‑rated VAT, a change operators say hits a market where most sales are export‑oriented and paid by foreign visitors.
Industry bodies, including the Tourism Business Council of Zimbabwe, highlight long booking cycles in destinations such as Victoria Falls, with groups typically contracted 12–24 months ahead. Representatives note that about 75% of 2026 packages were confirmed and paid from mid‑2024, making price reversals impractical and reputationally damaging. Citing that more than 70% of sector receipts are foreign‑derived, operators have requested a 12‑month deferral to 1 January 2027, warning the tax could erode competitiveness against regional peers such as South Africa and Namibia and force businesses to absorb unaffordable VAT liabilities.
Source: Herald Online
