• Assurance by Minister of Tourism to suspend Value Added Tax (VAT) on tourism Products will make the tourism sector viable.
• The association has for a long time been looking forward to the development.
• Non- suspension of VAT on the products has made it very difficult for the sector to thrive.
Livingstone Tourism Association (LAZ) says the assurance by Minister of Tourism to suspend Value Added Tax (VAT) on tourism Products will make the tourism sector viable and competitive in the Southern region.
Speaking in an interview with Money FM News, Association Vice President Hillary Kashempa noted that the association has for a long time been looking forward to the development because Zimbabwe has already suspended VAT on tourism products a situation that is disadvantaging Zambia’s tourism industry.
Mr Kashempa added that the non- suspension of VAT on the products has made it very difficult for the sector to thrive especially with the outbreak of the Covid-19 pandemic.
“That is what we have been looking forward to for a long time, and its already happening in Zimbabwe putting Zambia’s tourism sector especially in Livingstone at a disadvantage,” he said.
“Despite having some of the advantages in the industry, it has still remained difficult for the sector to record the much needed numbers from tourists.”
He added that what the sector needs are deliberate polices that will help the industry compete effectively with its competitors in the region and have a lot of tourists visit Zambia.
On Monday this week, Tourism Minister Ronald Chitotela disclosed to Money FM News that consultations with the Minister of Finance on the need to issue more Covid-19 relief packages to the tourism industry have reached an advanced stage.
He said the only remaining part is for Minister of Finance Dr Bwalya Ng’andu to issue a Statutory Instrument (SI) on the suspension of Value Added Tax (VAT) on Tourism products, noting that the development will see a reduction in cost of accommodation and meals offered by people in the hospitality industry.
“Consultations with the Minister of Finance on the need to issues more Covid-19 relief packages to the tourism industry have reached advanced stage; the only remaining part is for the Minister to issue a Statutory Instrument (SI) on the suspension of Value Added Tax (VAT) on Tourism products” he said.