VAT impact on tourism yet to be assessed

ANNE ROBI

TANZANIA National Parks Authority (TANAPA) has said that it is too early to assess the impact of Value Added Tax (VAT) on tourism sector since it has been imposed a few days ago.

Director General of TANAPA, Mr Allan Kijazi said the authority would be in a better position to give comprehensive information on the impact in the next one to two months from July 1 this year.

“It is too early to make the evaluation on tourists decrease or other impacts following the introduction of VAT made on the sector is too short. We will be in a position to assess and give clear information in one-two months time,” he stressed.

Mr Kijazi was reacting over concerns recently raised by tourism players over government plans to impose the VAT on tourism, saying the move will be detrimental to the growth of the sector.

The Tanzania Association of Tour Operators (TATO) was quoted as saying that the VAT plans for tourism industry would be counterproductive and will hamper the growth of the sectors that contribute to more than 17 per cent of the economic output.

The association among other players raised worries to lose their business to Kenya and other tourist destinations where VAT in tourism is zero-rated as VAT on tourism service would make Tanzania a more expensive tourist destination.

However, Mr Kijazi said the complaints by the tourism players could bring uncertainties, insisting on providing exact assessment one to two months from now upon the implementation of VAT that kicked off on July I this year.

On the other hand, TANAPA has opened their new office in Dar es Salaam in order to ease the provision of tourism services to their customers, stakeholders and the public at large.

Speaking during the opening ceremony, Mr Kijazi said that offices would help in handling administrative, tourism and conservation services towards helping their customers and stakeholders in Dar es Salaam and other nearby areas.

“The offices will ease the movement of our customers who early had to travel to Arusha to acquire the services,” he said, expressing the need for the people in the city to make use of the office to get tourism information especially in domestic tourism.

Launching the office, Permanent Secretary in the Ministry of Natural Resources and Tourism, Major General Gaudence Milanzi highly commended TANAPA for opening their branch in Dar es Salaam, saying the plan would help create public awareness on their services and thus promote domestic tourism.

Major General Milanzi also expressed the need for the parks to ensure they come up with a better plan that would see the country’s tourism flourish and aim higher to compete with big nations rather than competing with the neighbouring countries such as Kenya.

“You (TANAPA) should aim higher by setting up a plan that would enable you come up with new products that attract and promote our tourism industry to big nations such as UK and stop comparing and competing with a country such as Kenya.... such a country should not be our competitor... aim higher,” he insisted.

He also commended TANAPA for their efforts in anti-poaching efforts, calling for more efforts and new plans towards the preservation of the country’s rich natural heritage.