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Tanzania Value Added Tax and Park Fees Increase

by Sandy Salle on July 11, 2016

As you are undoubtedly aware, there has been a great amount of confusion and uncertainty regarding the recent Tanzanian VAT (Value Added Tax) increases, which are applicable at 18% to tourist guiding, game driving, water safaris, animal or bird watching, park fees and ground transport services, effective 1 July 2016.  These services were previously exempt from VAT.

The tourism industry has been diligently trying to get the Tanzania Revenue Authorities to reverse this decision, which we feel is a decision not in the interests of tourism for Tanzania.  As you may know, tourism is one of the highest revenue earners for Tanzania.

Sadly, the tourism industry has had no luck.

It was the industries considered opinion that paid bookings would not be effected, but Tanzania Revenue Authorities have elected to proceed as scheduled on all bookings irrespective of payment date. The result is that the changes have been immediate, and VAT levied from 1 July 2016.

Now that the dust is starting to settle and the grey areas clarified, we are able to gauge the full impact of these changes and the effect on you, our valued clients.

Confirmed Files Travelling in the Month of July 2016

We have taken the unique decision to absorb all VAT increases for our clients during the month of July. Unfortunately, we will need to pass on any Park Fee cost increases.

Confirmed Files Travelling from the Month of 1 August 2016 onwards

We are busy in negotiations with suppliers as to minimize the impact of these costs where possible, however, unfortunately, this will affect all itineraries to some extent depending on the components of the service offered. Hills of Africa Travel has no choice but to revisit these files, and will do this with clients starting to travel from 1 August onwards getting priority.

All new bookings and files in progress

These will carry the full effect of the VAT changes and re-quoted accordingly.

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