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15% Tax in Zimbabwe confirmed

15% Tax in Zimbabwe confirmed

In response to the below post, originally published in June last year, Zimbabwe has confirmed the implementation of 15% VAT on tourism services – particularly accommodation.

Whilst this is unwelcome news for the tourism industry, there is little-to-nothing we can do about it!  We hope all our partners bear with us through this price-hike period.

On a better note… The Rand -Dollar exchange rate has been dropping steadily for some time now, meaning that holidays to South Africa are now cheaper than ever before!  

colour stripe Money, money, money!

6 June 2014:

Zimbabwe has made changes to their taxation laws recently which will see a 15% sales tax added to tourism services such as accommodation and activities where previously they were exempt when booked for a foreign national. This due to come into effect from January 1st next year.

There has, however, been an industry outcry and there is a strong lobby working with the Tourism Minister to adjust the implementation thereof. Various suggestions have been made including the implementation of 5% year-on-year increase til 2017 when the full 15% will be levied. At this point, however, there has been no certain outcome.

It is worth noting also that there is a likelihood of other taxes coming into effect for Victoria Falls – including an additional 1% … which is being levied by the municipality to cover upgrade costs which were funded by the national government that which have to be repaid. They are viewing Tourism as the vehicle through which to raise the funds for this.

And lastly there is the potential that the African Union may implement a tax on tourism in all member AU States, Zimbabwe & South Africa included. It has been suggested to levy $10 on all flights in and out of the continent and $2 on accommodation. This however, is just a tabled suggestion and is set for debate at the next African Union Heads of State Meeting.  Naturally it has met with industry outcry from tourism in all affected countries, including Zimbabwe and South Africa.

We will, of course, keep you abreast on further developments, and supply re-costings to all our clients as necessary

colour stripe  We’ll keep you posted!