ZTA owed over $300k in levies

HARARE - Zimbabwe Tourism Authority (ZTA) has instituted legal proceedings to compel operators in the hospitality industry to remit outstanding levies collected from all users of tourism facilities on its behalf.

The authority is owed over $300 000 in taxes, which operators in the industry are legally obligated to remit to the authority.

ZTA has historically endured running battles with operators in the sector who evade or struggle to remit the tourism levy.

At present, over 60 hospitality institutions have failed to settle the two percent tourism levy and the authority has descended strongly on the defaulting operators.

Chevron Hotel in Masvingo this month failed to settle its outstanding levy to ZTA leading to the hotel’s property (four trucks, Nissan Hardbody, Mitsubishi Twin Cab, Nissan Cabster
and Nissan twin cab) being attached by the Masvingo Messenger of Court, and the property will be auctioned to recover the dues.

The levy, a statutory instrument was introduced by the ZTA on hotels; restaurants and food outlets considered to be serving tourists and the authority is funded primarily from the
two percent collected from tourism operators.

Economist Chris Mugaga said the failure by hospitality businesses to pay the tax was “prejudicing the tourism fund and the growth of the industry was being compromised.”

With the prevailing liquidity crisis, the viability of tourism establishments remains a concern. The tourism sector, which is still recovering from the decade-long economic slump,
is reeling from the current economic slowdown.

Apart from the tourism levy, the industry players have to contend with other levies, such as hotel licence, radio and TV licence per set, road transport operator’s licence, Zimbabwe Revenue Authority), Zimbabwe Music Rights Association and Zimbabwe Broadcasting Authority levy among others.

Post a comment

Readers are kindly requested to refrain from using abusive, vulgar, racist, tribalistic, sexist, discriminatory and hurtful language when posting their comments on the Daily News website.
Those who transgress this civilised etiquette will be barred from contributing to our online discussions.
- Editor

Your email address will not be shared.