2015 Budget tourism gaps cited
Published On October 15, 2014 » 2008 Views» By Administrator Times » Business, Stories
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THE Government’s failure to consider some submissions for the tourism sector in the 2015 Budget will stagnate the industry’s growth, Tourism Council of Zambia (TCZ) chairperson Felix Mulenga has said.
Mr Mulenga said in an interview in Lusaka yesterday that the council was concerned that the Government did not address some of the proposals TCZ submitted.?Prior to the Budget announcement, TCZ was confident that the Government would adopt most of the submissions taking into account the measures being undertaken by the competing neighbours to attract tourists in their respective countries.
In its submissions, it had proposed that the zero-rating of the tourist activities should be reinstated to the pre-2014 scenario, by the revocation of Value Added Tax (VAT) Statutory Instrument Number 97 of 2013, to enhance growth in the tourist industry which is still in?its infancy stage.
Mr Mulenga said the zero-rating of tourist activities would make tourism more affordable and assist to grow it to meaningful levels, thereby generating economic gains for the country, including job?creation.
The TCZ also proposed that the company tax rate should be reduced from 35 to 10 per cent for the tourism sector.
As a priority sector, it should receive similar tax treatment to that of the agricultural sector which is taxed at 10 per cent  to attract investment in the country and job creation, but that was not?addressed.

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