Business

Tourism sector players call for tax incentives to aid recovery

Tuesday, September 15th, 2020 00:00 | By
Tourism CS Najib Balala at hand to receive tourists disembarking a chartered plane at the Moi International Airport in Mombasa. Photo/PD/FILE

Milliam Murigi and Steve Umidha @PeopleDailyKe

Tourism and hospitality industry players have asked the national and county governments to reduce the number of taxes and levies in the sector to boost its recovery.

Levies introduced by counties coupled with already existing statutory taxes, they said are pushing up the cost of tourism products.

Hasnain Noorani, Kenya Coast Working Group Chair and Managing Director for PrideInn hotels said the government needs to reduce burden on the hospitality and tourism sector. 

“Kenya risks losing business if prices offered are way above our neighbouring competitors for instance Tanzania, Rwanda, South Africa and other countries,” he said

Tourism Fund

Currently, tourism establishments pay for statutory 14 per cent Value Added Tax and an extra two per cent tourism levy to the Tourism Fund. 

They also pay for business permits, National Environment Management Authority permit, and liquor licence at county level, health and advertising among other permits.

Speaking to Business Hub, Council of Governors chairman Wycliffe Oparanya called for harmonisation of conventional duties at the counties rather than at the national level to avoid duplications. 

“We have a proposal on the table on national policy on Economic blocs which we hope through a uniform taxation system will be able to solve some of these challenges,” the Kakamega Governor said in an interview on Friday. 

Chairman of Kenya Coast Tourism Association Victor Shitakha said that despite many levies being long-standing in nature, there has been a general increase in the number and scope of tourism-related taxes, fees and charges over the last couple of years.

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