Magufuli refuses to budge on tourism Value Added Tax

ATC News by Wolfgang H. Thome

The battle lines are now clearly drawn in Tanzania between the country’s tourism industry and the government, after President Magufuli told the sector off over their dissent about the Value Added Tax of 18 percent, which was unexpectedly heaped on services across the board, national park entrance fees included.
During a function at State House did the President in fact add salt to the wounds of the tourism industry when he told them that those not willing or able to pay the added cost should stay away and that the country did not need tourists who were not paying taxes. He was specific that it was better to have just half a million tourists who pay VAT than a million who do not pay VAT.

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