Tanzania tour operators are upbeat at the news that the government would execute the reforms highlighted on the blueprint to improve the business environment.
Wilbard Chambulo, the Chairman of the Tanzania Association of Tour Operators (TATO) told media shortly after the meeting with the President Dr. John Magufuli at state House that tour operators want to see the reforms are put into practice.
“I just wanted to know from the President what should the business community do to support the Government since most of our pressing issues are clearly articulated on the blueprint” Mr. Chambulo explains.
He adds: “My attendance to his Excellency President, Dr. Maguful’s meeting is all about reminding him of expeditiously fast-tracking the implementation of key issues mentioned in the blueprint”.
The key for the Government to achieve its plan of attracting two million tourists in 2020, Mr. Chambulo says lying in relieving private sector from unnecessarily time-consuming compliance issues.
For instance, TATO boss points out on multiplicity of taxes and overlapping responsibilities of the regulatory bodies on the tourism industry as the biggest headache to his members, arguing the government to address them to spur industry growth.
Representing over 300 tour operators, TATO is a leading lobby agency for a tourism industry that earns the country’s economy about $2.43 billion per annum, equivalent to 17 percent of the country’s GDP.
Mr. Chambulo says multiple taxes compliance consumes a lot of time and money and, in fact, could encourage tax evasion.
The TATO chairman argues that the contentious issue is not only how to pay myriad taxes and make profits, but also the modality and time spent in complying with intricate taxes.
“Tour operators need streamlining of taxes to ease compliance because the cost of compliance is so high and as such it acts as an obstacle for voluntary compliance” Mr. Chambulo explains.
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