Government has waived VAT payable by domestic tourists for accommodation and visitor services within the framework of the COVID-19 Economic Recovery and Stimulus Package for a period of 12 months.
Presenting the 2022 budget, Finance minister Mthuli Ncube on Thurday proposed to extend the VAT exemption on accommodation and visitor services consumed by domestic tourists by a further 12 months with effect from 1 August 2021.
The measure is in support of efforts to boost local tourism following the slow-down in international tourist arrivals due to the COVID-19 pandemic.
this comes as Treasury acknowledged that Tourism was the most affected by Covid-19 pandemic and priority is being given to the implementation of the National Tourism Recovery and Growth Strategy.
The Ministry of Environment, Climate Tourism and Hospitality Industry has been allocated $ZWL 3.7 billion.
This figure will also have special attention towards activities within Climate Change Mitigation.
Turning to tax exemption on councillors’ allowances, Mthuli said “allowances paid to Councillors appointed in terms of the Urban Councils Act are exempt from tax.”
However, allowances paid to councillors appointed in terms of the Rural District Act are liable to tax.
“In order to ensure equity and fairness in the taxation of similar allowances, I propose to extend the income tax exemption to allowances paid to councillors appointed in terms of the Rural District Councils Act,” Ncube said.
The 2022 National Budget seeks to buttress the growth trajectory established in 2021, and enable the economy to build resilience against shocks, including the COVID-19 pandemic.
“We endeavour to execute the Budget without wastages, delays and with timeliness,” Ncube said.
“The Budget implements the NDS1 objectives which are being carefully monitored and evaluated through the Implementation and Evaluation Framework. And with a unity of purpose and productive cooperation, Vision 2030 is attainable, as buttressed by Proverbs 21 verse 5, which says “The plans of the diligent lead surely to abundance but everyone who is hasty comes only to poverty”.
