The myriad Taxes some of which are unpredictable are among the major hindrances to flourishing of Tanzania Safari Tours. The range of tour operators in destination Tanzania are obsessed with complying with the Tax regulatory structures other than developing tourism itself.
The destination Zanzibar which is one of the major Africa safari recreational
sites is faced with the same issue. The tourism tax payers are decrying
of the uncertainty and complexity of tax regulations. Report from the
Independent Tax consultants Wineaster Anderson and Deogratius Muhangila
who carried out a study in the year 2015 indicate that the burden of
administration costs the Island Tax Payers a sum of Sh7.14 billion every
Basing on the very document, the Zanzibar Association of
Tourism Investors (ZATI) drafted a policy brief which indicated that by
2010, a medium sized company in the destination Zanzibar undertakes
forty eight (48) payments per year which means that the tax payer had to
visit the bank 48 times on average. This definitely compromises the
amount of time allocated to developing business and increasing Africa Vacation Safaris and tours to the area.
Value Added Tax on the tourism services was introduced in the
destination Tanzania and came to force in July 2016. The tourism taxes
include; levies, fees and licenses can stretch from 10 to 115 with
rigorous procedures of entering and are always unpredictable. This puts
the tax payers in situation where they are preoccupied by retrieval,
request and keeping of information, form completion, frequent movements
to tax authorities for clarifications and tax advice.
complexities are surely becoming a threat to the growth of tourism
business, hard for start ups and discouraging innovations. It can be
noted that though government of Zanzibar has attempted to amend obsolete
sections, tax law consolidation, establishing education departments for
tax payers and introducing one stop shops by having a branch next to a
tax office, the operators still find the tax system complex.
remedy the situation, the tax payers are advocating for merging of tax
forms where multiple related taxes can be merged into a single tax and
paid once to save time, introduction of electronic tax system, increase
awareness and sensitization about taxes and setting up of a toll free
call center to avail tax information.
In other destinations like Rwanda where the electronic tax system is in place and efficient, such complexities have been neutralized and the tour operators are majorly aiming at enhancing travel to Rwanda including Rwanda Gorilla Safaris.