$5 million tax bill for Vic - Falls hotels

The Zimbabwe Council for Tourism the industry representative body for the hospitality sector has engaged Government to keep the Zimbabwe Revenue Authority at bay after the latter slapped a $5,3 million tax bill on two hotels in Victoria Falls.

The 112-year-old Victoria Falls Hotel, owned by Emerged Railway Properties a joint venture between the National Railways of Zimbabwe and Zambia Railways and jointly managed by African Sun and Meikles Africa, owes the bulk of the bill at US$4,1 million.

Victoria Falls Lodge, a privately-owned lodge in Zambezi National Park, is said to owe Zimra US$1,3 million in unpaid taxes.

More hotels are under investigation and could have tax bills sent to them soon. The bulk of the unpaid taxes are said to have accrued over five years through to 2015. Zimra says the hotels were not paying withholding tax on commissions and value added tax on food sold to foreigners as part of accommodation packages.

 Although the law that made the 15 percent VAT on food paid for by foreign visitors became operational at the beginning of the year, Zimra has backdated the obligations to 2010.