Zimbabwe to review 15% VAT on foreign tourists

Government is in the process of reviewing the 15% Value Added Tax (VAT) it levied on the tourism sector late last year, amid indications more foreign visitors are cancelling international bookings to Zimbabwe.

The levy has led to an outcry by tourism sector players who argue that the 15% VAT on foreign tourist arrivals has made the country an uncompetitive and expensive destination for tourists.

Finance minister Patrick Chinamasa made the proposal in the 2014 national budget presentation last year in December.

Tourism and Hospitality Industry minister Walter Mzembi said he met with his Finance counterpart Chinamasa last week to discuss the reviewing of the measure.

Mzembi said the ministry's argument was about the timing of the move and its impact on the tourism sector which was still in its growth stages