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Not Again....TZ govt plannig to raises VAT and other taxes??

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San Francisco...
Level Contributor
239 posts
15 reviews
Not Again....TZ govt plannig to raises VAT and other taxes??

Edit: Sorry for the typos in the title.

Last time I as planning a trip to TZ in 2011, there was some TANAPA mandate for raising prices.

Deja Vu ! My tour operator sent me this : eturbonews.com/35761/unfriendly-tourism-budg…

I have been informed that if the govt approves this, my safari prices for 2014(and yours too) could go up.

1. VAT increase on Transport and park fees

2. Bed nite levy 2% on accommodation costs

Any thoughts from the experts about what's going on ?

Edited: 12:02 am, June 28, 2013
San Francisco...
Level Contributor
239 posts
15 reviews
11. Re: Not Again....TZ govt plannig to raises VAT and other taxes??

Thank you for all the information, folks ! Pls keep us updated on what happens to this 2% increase (gets implemented or quashed).

TP

Findlay, Ohio
Destination Expert
for Tanzania, Ngorongoro Conservation Area
Level Contributor
12,407 posts
8 reviews
12. Re: Not Again....TZ govt plannig to raises VAT and other taxes??

Mfuwe, which 2% on accommodations is peanuts really and most won't notice it. The normal VAT in Tz is 20% on most salable items at the consumer level, there are some items which come in less than this I believe. For most transactions in Tz you don't notice it because it's built into the sale price (for example petrol is priced at n Tsh per liter, VAT included). It appears that for most of the tourist items which they were considering was at a 18% VAT rate, this would be significant as it would raise the price of a $10,000 safari (since the VAT was on most all of the safari items) $11,800 and that would be significant for most folks. I hope that reasonableness can set in with the Finance Ministry and MPs (knowing full well that saying reasonableness and government in the same sentence is a dichotomy). I am certain that they know that a Tz safari is expensive when compared to other countries and this will be taken into consideration (as I say smiling/laughing).

Isle of Man, United...
Level Contributor
33,509 posts
242 reviews
13. Re: Not Again....TZ govt plannig to raises VAT and other taxes??

This one Mzee.

2. Bed nite levy 2% on accommodation costs.

VAT suggestions have been withdrawn.

nyc
Level Contributor
14,023 posts
14. Re: Not Again....TZ govt plannig to raises VAT and other taxes??

>>reasonableness and government >>

... of course a dicotomy when you consider that all of what is listed above the government wanted to put into effect as 1st July and that was as of 26th June... duh! Give some notice guys, like maybe 1st Oct. Sure, it's after the peak of peak seasons, but besides the 2% on accommodations, if all of the others were to be included: park fees, game drives*, etc. etc.... lots of $$$ and not something an outfitter wants to ask from client off a 25/hr flight. And while even $200 extra doesn't seem to be a lot, remember there are many travelers who are counting every penny and for them could just as easily be $2,000.

* and what if client doesn't go out on game drives (the straight-on route between Tarangire to Ngo... not a game drive), or what if they don't see game, or would there be a price if seeing cats vs giraffe, elephant, birds, etc... a special fee for specific species?

Not a government out there that isn't at sometime, just 'dumb.'

Wait and see, I guess.

Isle of Man, United...
Level Contributor
33,509 posts
242 reviews
15. Re: Not Again....TZ govt plannig to raises VAT and other taxes??

<if all of the others were to be included: park fees, game drives*, etc. etc.... >

Big 'if' there Princess. At the moment they are ideas. Nothing more. Yes, their imposition would hurt the industry and for that reason "they" need to be careful they don't kill it.

* You can't tax a Game drive as there is no way to police it. Two cars on the same road through NCA. Are they going to check the occupants for Cameras?

It will be on the Hire charges for Guide and Car. Like I said earlier, "I am not Birdwatching, I am just looking out the window through binoculars. I don't see so well." As if.

I like the idea of a species tariff.. I don't look at Baboons. Can I have a refund? What if we see a Leopard? but have not paid the fee? Can we still look? (Don't laugh! We have this problem in Uganda with Gorillas and Chimps encountered when "just walking" in the Forest.).

but the Bed levy is really immaterial. Most Guests have no idea of the breakdown charged anyway. I count every penny but am realistic enough to know that $200 on a $10,000 trip is small change. Some idiots TIP more than that!

nyc
Level Contributor
14,023 posts
16. Re: Not Again....TZ govt plannig to raises VAT and other taxes??

... that's why I laughed at the 'game drive' fee/tax/VAT. But this is what was being discussed and thus the outfitters were so involved in hoping someone in government would have a 'reality check' on the entire issue.

If the 2% does go into effect (believe it's 5th July) and for new price quotes... agree that the amount probably wouldn't be noticeable to the client. But if asking for this extra from soon to be arriving clients that have already paid in-full, not good.

Just have to wait and see.

Isle of Man, United...
Level Contributor
33,509 posts
242 reviews
17. Re: Not Again....TZ govt plannig to raises VAT and other taxes??

True. It is await and see but my instinct is that pre paid accommodation will be excluded. Like any other Sales tax it is caught at the date of payment not the date of use. Think APD and VAT.

IF the client has paid in full already they should be exempt. However if the TO has not paid then they should suck it up when invoiced. Happy to put this to the test on my next trip for which I have paid several Lodges already in full.

San Francisco...
Level Contributor
239 posts
15 reviews
18. Re: Not Again....TZ govt plannig to raises VAT and other taxes??

Anybody have an update on this 2% thing ? Thanks !

Stanley, Falkland...
Level Contributor
30,321 posts
56 reviews
19. Re: Not Again....TZ govt plannig to raises VAT and other taxes??

"this 2% thing "

Is it material? A couple of beers?

Species tariff - it can work! One guide suggested a points system for game ...

Aardvark = 100

Leopard = 99

Lion = 66

Honey Badger = 90

etc etc.

He promised we would see 200points -worth of game per day and, say, 1000 by the end of the trip.

Then everyone is happy. He may even get a tip if he achieves 1500 points!

Isle of Man, United...
Level Contributor
33,509 posts
242 reviews
20. Re: Not Again....TZ govt plannig to raises VAT and other taxes??

<A couple of beers?>

Is Beer THAT expensive down in Stanley? I make it 60 Kilimanjaros or more. Not that I will cut down any.

Species Tariff. We have a similar mark up with "Elephant Moments". A couple of quiet ones 30 yards away. 25. A friendly bull within feet.50. Breeding herd crossing close 60+. Rumbling and Ear wagging, add 5.

Mock charges rate highly depending on how close when she stops. I won't mention how high we sometimes score on a good day. (and yes, if the Driver does not panic I actually tip. He has earned it.)