Zimpapers Logo

Government has defended the introduction of a 15 percent Value Added Tax on accommodation for international tourists, saying the move was in line with practices in the region and internationally.

Appearing before the Portfolio Committee on Environment, Water, Tourism and Hospitality Industry on Monday, Secretary for Finance and Economic Development Mr Willard Manungo, said Government had put in place other incentives to support the revival of the tourism sector.

“What we are doing is broadly in line with other jurisdictions in the region and the world over. This doesn’t mean as fiscus we have been blind to the needs of the tourism sector.

“We have extended a number of concessions to the tourism sector to support them turn around their operations,” Mr Manungo said.

He said Government had suspended duty on capital goods and cars for tourism operators with Treasury foregoing close to $2 million in potential revenue from the taxes. “As Government, we remain alive to the need of providing tax concessions to the tourism industry that will enable them to grow,” he added.

Mr Manungo called on tourism operators to reduce their prices whenever they benefited from Government concessions, saying this would also enable Zimbabwe to remain competitive.