Gov’t to review, harmonize taxes in hospitality sector
Commissioner Mr. Jimmy Andrew kigozi (L) with Proprietors of Nican Resort Hotel Anitah and Nixon Kakeeto shortly after commissioning the facility's new convention center on November 8, 2024.
What you need to know:
- The planned tax review, Mr Kigozi said is in response to concerns from hotel proprietors that the many taxes levied on the hospitality sector are doing more suffocation of the industry than promoting it.
The government has pledged to review and harmonize taxes in the hospitality sector.
This was revealed by Mr Jimmy Andrew Kigozi, the Assistant Commissioner for tourism development at the Ministry of Tourism, Wildlife and Antiquities during the celebration of the 10th anniversary of Nican Resort Hotel in Kampala on November 8.
The planned tax review, Mr Kigozi said is in response to concerns from hotel proprietors that the many taxes levied on the hospitality sector are doing more suffocation of the industry than promoting it.
“We are in the know of the many licenses which include swimming pool, bar, liquor, still boards and so many other licenses. We are however, working with the Ministry of Finance to ensure that we harmonize these licenses and taxes so that at the end of the day the business operators are not suffocating,” he said.
He further said the move will be an addition to the already facilitated 100 percent tax exemption for imported hotel equipment which he said has already benefited many hotel proprietors.
“For as long as these equipment, for example cartulary are well marked because we don’t want to see this cartulary ending up in kikuubo , the ministry will make sure there is 100 percent tax exemption and I assure you many hotel operators have benefited from this on customized tourism vehicles,” said Mr. Kigozi.
In continuous efforts to have the hospitality industry thrive, Mr Nixon Kakeeto, the proprietor of Nican Resort Hotel criticized government on the low support of the industry at local market urging sensitization on the essence of supporting local tourism.
“Government and various stakeholders ought to support us in sensitizations on promoting local tourism, we however applaud it for the improvement in some areas,” he said.
Nican Resort Hotel which started in 2014, he said has endured challenges to see it celebrating its tenth birthday.
Speaking at the event, Owek. Robert Sserwanga, the Buganda Kingdom Minister for sports, youth and arts said that its crucial for the government to ease the environment for hospitality propriators as it markets the country as the number one tourism destination.
“Some hotels are adjacently located near these tourists attractions for example Nican that is located on the way to Nagalabbi, a coronation place for the king, tourists that come in to visit could probably sleep or eat here. It is therefore important that we promote favorable working environments for these hotels,” he said.
