The Arusha Region may see shut down of businesses in some of the tourist hotels due to disagreement with Ministry of Natural Resources and Tourism’s imposition of various fees, levies and taxes.
The hoteliers have cited lack of consistency and fairness on the levies as those changes frequently with change of person in the ministry.
According to Tanzania Association of Tour Association of Tour Operators’ (TATO) Executive Secretary Sirili Akko, the ministry is not cooperative with the hotels for amicable resolution of the impasse.
He said, “We find it extremely difficult to comply with an endless list of taxes, levies and fees demanded by the government. We all wish growth for this industry, but this is not the way to go about it.”
He mentioned to be preferring shutting down the business after realizing the new changes are impossible to abide in the country.
Hotel owners have also complained about the interpretation and taxes are not very clear in terms of interpretation. Drastic change has been witnessed from time to time and the hotels are classified among non-complaint investors. This is something unhealthy.
If the shops start shutting down, future of tour industry may not be very favorable and so it is suggested to go through negotiations and minimize hitches. The top agendas should be to review the fees and taxes imposed for sustainable growth.
Meanwhile, it is learned the Minister for Finance and Planning, Dr Philip Mpango, is due to meet the hoteliers on February 25.
