Tanzania: TRA receives updated list of taxable hotel facilities

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Dar es Salaam – The Ministry of Natural Resources and Tourism yesterday handed over a recently revised tourist overnight tax to the Tanzania Revenue Authority (TRA) which is expected to provide a list of registered tourist accommodation establishments that may pay a fee.

The permanent secretary of the ministry, Dr Aloyce Nzuki, said the tax is in line with the Tourism Law no. 29 of 2008, 59 (2) as well as the Tourism Development Tax (TDL) Regulation which came into force immediately after its publication in the Government Gazette on October 1, 2013.

He said that since 2015, the TRA has been using the accommodation list introduced in 2015 to collect the night tax on the 1,200 facilities available at that time.

“The government has learned that the 2015 list is out of date as the number of accommodation establishments increased after recognizing 577 new accommodation service providers, bringing the total to 1,815 accommodation establishments across the country that are supposed to pay the night tax, ”he said.

According to him, the government is also planning to review all accommodation facilities in the country with the aim of expanding the scope of the tax collection by the TRA.

At the same time, he said stakeholders had called for changing the methods of collecting levies, noting that the 2013 Tourism Development Levy Regulation which was amended this year provides that the night-time levy of bed was reduced to 1% of the room price.

He noted that the regulatory change would help with fairness, disputing the fact that in the past $ 1.5 was paid by every tourist spending a night at a designated tourist establishment regardless of the room rate.

Earlier, he said, the ministry, through Article 17 (1) of the Tourism Law, was mandated to examine designated tourist facilities and advertise in the official government gazette to allow the TRA to collect taxes.

He said the ministry was also responsible for organizing accommodation and catering areas according to star, grade, quality and standards aimed at improving the services offered by the industry and enabling payment. hosting services license fees based on their ratings.

According to him, the Bed Night Levy is charged to tourists who sleep or use accommodation facilities, noting that hotel management is supposed to collect the levies and hand them over to TRA.

“Each owner of a registered tourist accommodation establishment or designated tourist establishment must collect overnight taxes from tourists and remit them to TRA within the prescribed time frame,” he said.

For his part, TRA commissioner Edwin Mhede said the decision to change the levy from $ 1.5 to one percent came at the right time because the levy has been around for a long time.

“Despite all the challenges over the past five years, we have aimed to raise at least 13.7 billion shillings from the industry. However, we have raised 32.3 billion shillings, which equates to 242.9% compared to to the goal, ”he said. on page 4


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