Tax misstep risks derailing tourism boom

ZIMBABWE’S fragile tourism recovery is facing an unnecessary setback following the government’s abrupt adjustment of value-added tax (Vat), a move that risks eroding competitiveness in one of the country’s most promising sectors.

Hospitality concern, Victoria Falls Safari Collection, has indicated it will partially shield customers from the impact of the new tax measures that took effect this month.

In November last year, Finance minister Mthuli Ncube raised Vat to 15,5% and proposed applying the standard rate to services offered by designated tourist facilities, including safaris and hunting, regardless of classification.

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