Local hotel tax implementation starts today

Jun 30, 2008

THE local hotel tax, which will be paid by room occupants, takes effect today. Vincent Sekkono, the local government ministry’s permanent secretary, said the tax would be paid by room occupants when settling their bills.

By Ibrahim Kasita

THE local hotel tax, which will be paid by room occupants, takes effect today. Vincent Sekkono, the local government ministry’s permanent secretary, said the tax would be paid by room occupants when settling their bills.

“The management of the hotels/lodges shall have a statutory duty to collect the tax and remit it to the local governments where the hotels/lodges are located,” he said in a statement.

“The tax shall be remitted to the local governments on a monthly basis.”

Sekkono said occupants in five and four-star hotels would pay $2 (about sh3,200), while three and two-star hotels and other hotels charging above sh50,000 will levy sh2,000.

Hotels and lodges, which charge less than sh10,000 per room, will levy sh500.

The tax is one of the ways of replacing revenue lost due to the abolition of graduated tax.

“There will be a nightmare in administering the tax. We would like the Government to streamline this tax,” a hotel operator said.

(adsbygoogle = window.adsbygoogle || []).push({});