VAT Exempted on Tourism Products

By Taboka Nleya P

The Minister of Finance and Economic Development Professor Mthuli Ncube has reviewed Section 78 of the Value Added Tax Act Chapter 23:12 of Tourism Products and Services in a bid to promote domestic tourism in the country .

Economist Titus Mukove spoke to Skyz Metro fm news reporter said exemption of the V.A.T given to suppliers of key services to domestic tourism for the period of 12 months is important because tourism is one of the major contributors to the country’s GDP.

” Supporting tourism is of paramount importance if the agenda of economic growth is too be pushed because the sector faced set backs due to a number of Covid 19 restrictions which were imposed by the government.”

Mukove stated that there is a need to preserve employment both on the tourism sector for the operators and those that offer critical services to supply the sector as well as downstream industries that are also a complement of the tourism sector.

” Such support will improve interaction in business ventures amongst the top operators as well as the suppliers in the sector. ”

According to the statement VAT has been exempted for services that include food and beverages served at places of accommodation, Shuttle services, car rental services, marine and ferry services, sport fishing; safari operations.

Other regulations stated include touring and exploring national museums as well as monuments and recreational activities provided by companies registered with the Zimbabwe Tourism Authority.

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