In a bid to resuscitate the tourism sector and promote local tourism Government has reduced corporate income tax rate to 15 percent from 35 percent on income earned by hostels and lodges on accommodation and food services.
This is one of the measures that Minister of Finance Bwalya Ng’andu has put up in the proposed 2021 National Budget to revive the tourism industry which has been negatively affected by the effects of the Coronavirus pandemic.
The tourism sector is the hardest hit by COVID-19 with virtually no international tourist arrivals since March 2020 due to travel restrictions and subdued domestic tourist activity.
The Minister’s announced measures in the 2021 national budget are in additional to other existing incentives granted in response to COVID-19 earlier this year.
Also announced to resuscitate the sector is the suspension of import duty on safari game viewing motor vehicles, tourist busses and coaches.
Further, the Minister announced the suspension of license of renewal fees paid by hotels and lodges, suspension of retention fees paid by tourism enterprises and the registration fees for hotel managers.
And Minister of Tourism and Arts Ronald Chitotela has expressed optimism that the measures announced in the 2021 national budget will go a long way in the revamping and promotion of local tourism in the country.
Mr Chitotela explained to ZANIS in an interview, that the tourism industry is one of the key economic sectors of the country, hence any initiative aimed at restoring its full capacity will have a positive impact to the country’s economic development