News / National
Zimbabwe expects more from hotel industry
28 Jul 2011 at 13:14hrs | Views
The Zimbabwe government is set to reap more tax benefits from the hotel industry after the re-introduction of statutory instruments 46 and 50 which enable the sector to import capital goods and motor vehicles duty free.
The Zimbabwe Council of Tourism President, Mr. Tendai Madzivanyika said the reinstatement of the statutory instruments is a good decision that will give the industry an opportunity to re-brand itself.
He said the importation of capital goods duty free will see the industry charging competitive regional prices thus enabling the government to reap more tax benefits.
Zimbabwe Tourism Authority spokesperson, Mr. Sugar Chagonda, urged players in the tourism industry to take advantage of the statutory instrument to spruce up their product.
"Industry should take advantage of this instrument. It is sad to note that the same five star hotel in Zimbabwe offers less in the quality of the product compared to one hotel in South Africa so it is important that tourists in the region experience the same product if not better" said Mr Chagonda.
In his budget review presentation on Tuesday, Finance Minister Tendai Biti announced a waiver of duty on vehicles for safari operators as well as on capital goods with effect from the first of September this year, but with tighter measures in place to curtail any form of abuse.
The waiving of duty for safari operators was scrapped in the 2010 to 2011 budget after some unscrupulous people abused the facility to smuggle their personal vehicles without paying duty.
The Zimbabwe Council of Tourism President, Mr. Tendai Madzivanyika said the reinstatement of the statutory instruments is a good decision that will give the industry an opportunity to re-brand itself.
He said the importation of capital goods duty free will see the industry charging competitive regional prices thus enabling the government to reap more tax benefits.
"Industry should take advantage of this instrument. It is sad to note that the same five star hotel in Zimbabwe offers less in the quality of the product compared to one hotel in South Africa so it is important that tourists in the region experience the same product if not better" said Mr Chagonda.
In his budget review presentation on Tuesday, Finance Minister Tendai Biti announced a waiver of duty on vehicles for safari operators as well as on capital goods with effect from the first of September this year, but with tighter measures in place to curtail any form of abuse.
The waiving of duty for safari operators was scrapped in the 2010 to 2011 budget after some unscrupulous people abused the facility to smuggle their personal vehicles without paying duty.
Source - zbc
