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Tour Operators appeal to the Parliament on the matter of the 18% VAT

The Tours and travel operators in Uganda have appealed to the Uganda Parliament to stop the implementation of 18% value added tax on all hotels and lodges upcountry as it will affect the tourism business.

These tours operators when they were before the Parliament committee on finance expressed their grievance that if this 18% VAT is implemented it could grossly affect the industry that is still struggling to catch up with the rest of East African countries because that would mean increasing on the prices charged per client intending to come in .

Amos Wekesa who is the director, Great Lakes Tour Company said that whereas the rest of the East African countries have invested millions of dollars in the industry, Uganda invests $ 90000 only per year but it is rushing to have the prices increased while the other countries with better investment are staying put. He said that without tangible investments to market the industry, the re can not be any sort of tax rising if the country intends to keep its clients and even get more other these taxes will kill the industry within the shortest time.

Meanwhile Gary Segal who is the general manager of Wild places also said that once the tax is implemented, it will be transferred to the customers and this might discourage tourists from visiting Uganda and the end results are bitter for the industry and the country at large. The committee promised to consult the ministry of finance before making a final decision on the petition, hopefully the decision will be favorable.

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