117 tourism firms benefit from tax rebate
A TOTAL of 117 tourism companies benefitted from the tax waiver valued at US$11,3 million in 2021 after the Government moved in to cushion the sector, which had been adversely impacted by the Covid-19 pandemic.
The waiver of the Value Added Tax on domestic tourism and duty exemption facility has been adopted to help improve access to tourism products and services by the domestic market through extended price reductions.
According to a detailed report on the performance of the tourism sector, which was presented before Cabinet by Environment, Climate, Tourism and Hospitality Minister, Mangaliso Ndlovu, last week, significant tourism recovery milestones are being achieved as a result of improved Government support to the sector.
“A total of 117 applicants received tax rebates valued at US$11 301 721 in 2021, compared
to the 81 applicants that received US$2 399 957 in 2020.
The rebates were for capital goods and specified motor vehicles,” reads the report.
“Government paid ZW$198 million to support operations of the Zimbabwe Tourism Authority, whose operations are normally funded by a two percent levy charged on services provided to both domestic and international tourists.”
Furthermore, following recent changes in foreign currency retention thresholds, the report states that tourism operators are now allowed to retain 100 percent of their foreign earnings as part of fiscal support measures for the sector.
The Tourism Satellite Account, which is a statistical tool for the measurement of tourism
’s co
ntribution to the Gross Domestic Product, trade and employment in the economy, is also now operational.
Following last week’s meeting, Cabinet resolved that the Statutory Instrument on Duty rebates be amended to give the Zimbabwe Tourism Authority the exclusive mandate to recommend applicants to the Ministry of Finance and Economic Development for duty processing.
Efforts are also under way to expedite the gazetting of major water bodies like TugwiMukosi and Gwayi Shangani dams as Conservation and Recreational Parks so as to unlock their investment potential.
The Ministry of Environment, Climate, Tourism and Hospitality Industry would, going forward, be expected to work closely with that of Finance and Economic Development to come up with an effective financing plan that can complement the recovery of the tourism sector.-The Chronicle
