Travel to Tanzania just got more expensive as the Tanzanian Government adds an 18 percent VAT tax.
World Expeditions says the additional tax will result in additional costs for travellers to the country from 1st July, 2016.
World Expeditions CEO, Sue Badyari, says travel operators will be forced to pass on the 18 percent VAT tax to travellers to Tanzania which will be imposed on all tourism services.
These include supply of tourist guides, game driving, water safaris, animal or bird watching, park fees and ground transport services in the new financial year.
“As soon we had notice that the new tax was being proposed, we contacted all customers with bookings for our upcoming trips to Tanzania, suggesting that they pay any outstanding balances before 1 July, 2016, to avoid the additional charges,” Badyari said.
Unfortunately, there is no way of avoiding the 18 percent VAT tax for new bookings and we have no choice but to increase our tour prices to absorb the new tax, Badyari added.
The Tanzania Association of Tour Operators (TATO) has said in a statement that the VAT charges for tourism industry would be counterproductive and will hamper growth of the sector which contributes to nearly 17 percent of the GDP.
