A study by the Open University of Tanzania (OUT) and UK’s Hull University has proposed a tax relief and VAT rate reduction to boost the country’s tourism sector that was badly affected by the COVID-19 pandemic.
"During the pandemic, there was a revenue slump as financial institutions' trust on lenders reduced,” Tanzania Daily News quoted the head of the department of tourism and hospitality at OUT Halima Kilungu as saying.
“Therefore, the only fastest way is for the government to reduce the tax to cushion the effect caused by the pandemic."
The researchers also recommended that the Tanzanian government consider lowering landing fees and entry charges paid by foreign tourists.
Tourism minister Damas Ndumbaro said the government is ready to work with all tourism stakeholders to ensure the sector is vibrant and becomes productive.