Online Reporter
Rutendo Nyeve, Victoria Falls Reporter
TOURISM operators have appealed to Government to review the newly imposed 15.5 percent Value Added Tax (VAT) on tourism activities and transfers, warning that the sudden policy shift threatens already confirmed international bookings for 2026.
Industry representatives say tourism activities — including transfers, cruises, safari excursions and adventure packages — have historically been zero-rated for VAT since its introduction in Zimbabwe. The policy recognised that most tourism services are purchased by foreign visitors and are therefore treated as export proceeds exempt from domestic taxation.
However, the 2026 National Budget Statement and the Draft Finance Bill HB 14 of 2025 now classify these services under standard-rated VAT, effective 1 January 2026. While the move is aimed at broadening the tax base, operators argue that the timing is damaging to the sector.
In an interview with Zimpapers, Tourism Business Council of Zimbabwe (TBCZ) president Mr Clive Chinwada explained the industry’s long booking cycles, particularly in Victoria Falls.
“As a tourism industry, and in Victoria Falls specifically, we deal with serious groups which ordinarily book one to two years in advance. When tour operators attend travel shows, they engage the market and take bookings for the upcoming year,” he said.
“Given that complexity, it is not easy to go back to clients and say we are reviewing rates which have already been distributed through intermediaries along the value chain.”
Employers Association of Tour and Safari Operators representative Dr Clement Mukwasi said about 75 percent of 2026 package bookings have already been confirmed and paid for, with prices negotiated and contracted in mid-2024.
“Applying VAT now would require reclaiming additional funds from international agents and tourists, which I can describe as impossible and reputationally damaging,” he said.
The TBCZ noted that more than 70 percent of tourism receipts are foreign-derived and urged Government to consider a 12-month delay in implementing the tax.
Industry leaders warned that without a postponement, Zimbabwe risks becoming uncompetitive compared to regional rivals such as South Africa and Namibia, while local operators could face severe financial strain if forced to absorb unpaid VAT liabilities.
The sector has respectfully requested that Government defer implementation of the VAT on tourism services to 1 January 2027, allowing time for contractual adjustments and protecting Zimbabwe’s growing reputation as a leading tourist destination.
