Find visitors' favorite businesstravel Hotels And.... Book your best!

Uganda Tour operators query hotel tax

Tour operators have warned that they may reduce their services due to the reinstatement of the tax on hotel accommodation, a move that could undermine the tourism industry.

They are now asking government to halt its decision of implementing the Value Added Tax on hotel accommodation, arguing that they might close their businesses, leading to job loss.

In June, Finance minister Maria Kiwanuka announced that the value addition tax exemption for hotel accommodation will be withdrawn. VAT in Uganda presently stands at 18 per cent and if the proposal is passed by Parliament into law, the cost of hotel accommodation in the country could rise by a corresponding figure.

Speaking to the Daily Monitor, Mr Geoffrey Baluku, the Secretary of the Association of Uganda Tour Operators (AUTO), said: “The impact of this to tour operators is immense as they will incur losses estimated between 3per cent to 9 per cent which is likely to lead to closure and bankruptcy of the tour operators in Uganda.”
AUTO is Uganda’s leading tourism trade association, with over 100 members countrywide.

“It is not possible for tour operators to ask our confirmed clients to pay an increase of 18 per cent accommodation rates, as most of our tours were confirmed way back. Therefore, we shall simply have no money to pay this increase,” Baluku said.

In South Africa, VAT is reclaimed at the point of departure, while Tanzania and other East African countries have halted imposing VAT. In Kenya, the transportation of tourist has been exempted from VAT but will now have to pay, something tour operators are opposing.

By Dorothy Nakaweesi
The Monitor News paper

Click here to post comments

Join in and write your own page! It's easy to do. How? Simply click here to return to Uganda Hotel Industry News and Hotel Reviews.

Haven't yet found what you Want...?

If you haven't yet found what you were looking for or you need detailed information about the subject matter on this page


feel free to ask our business travel consultants.

Farmland for Sale
Prime Commercial Property
Entebbe Rd Land 4 Sale
Over 20 Farmland Parcels
Property & Plots of Land

Uganda Online SuperMarket
Online SuperMarket

Uganda Coffee Safari
Book My Coffee Tour

Uganda Honey
Uganda HoneyComb

Subscribe to our Business Travel Newsletter

Enter Your E-mail Address
Enter Your First Name (optional)

Don't worry — your e-mail address is totally secure.
I promise to use it only to send you Africa Uganda Business Travel News Digest.

Hotel Booking

Car RentalCar Hire

Africa Uganda Shipping & Handling ServicesShipping & Handling Services

Our Sponsorship Policy

Apple Guavas available
Africa Uganda Plants GuideAfrica Plants Guide

Charity Investment Guide
Changing Lives

Africa Uganda SMS Guide
Africa Bulk SMS

Poultry Investment Guide
Poultry Business Guide

Related Pages

Uganda Hotels Directory

Uganda Hotels Booking Guide

Houses U can buy Uganda Real Estate Guide Industrial/Farmland Deals

Uganda Real Estates Guide

The Mountain Gorilla

Uganda Safari Guide

Uganda Weather Today

Book My Hotel

Please note that all fields followed by an asterisk must be filled in.

Please enter the word that you see below.


Uganda Currency