Local govt tax bites hoteliers
Jan 25, 2009
THE Uganda Hotel Owners Association (UHOA) have written to the finance ministry protesting the local government tax. UHOA’s complaint is being channelled through the trade ministry.
By David Muwanga
THE Uganda Hotel Owners Association (UHOA) have written to the finance ministry protesting the local government tax. UHOA’s complaint is being channelled through the trade ministry.
“We have written to the trade ministry which has also written to finance complaining of two types of taxes,†said Ismail Sekandi, the UHOA executive director.
Sekandi explained that his members have asked the Government to waive taxes on specifically-designed vehicles used by tour operators as a way of attracting more investment in the sector.
“We are also consider the introduction of the local government tax on hotels and another levy being introduced in the Tourism Bill of February 2008 as double taxation in the sense that it is levied from our gross revenue,†he said.
The sector contributes 10% to the national’s gross domestic product.
ct and earns Uganda $320m in export earnings,†,†Sekandi said last week. This was during the Presidential Investor Roundtable at Imperial Royale Hotel in Kampala.
He disclosed that the sector was experiencing real growth in tourist arrivals according to the Uganda Bureau of Statistics and increased investments.
“However, the sector is characterised by inadequate services like lack of internationally-rated manpower, affordable accommodation in tourist sites upcountry, lack of access roads, internal air travel and the slow Internet connectivity,†Sekandi stated.
He said there was lack of information on tourist products and minimal efforts at branding products, making it difficult for Uganda’s own products to be known internationally.
“The situation is aggravated by the high costs of doing business. Utilities are rated at 30% of total expenditure. This affects the competitiveness of the sector,†Sekandi added.
“There is need to market alternative energy options and offering of energy rebates to the sector,†he suggested.
THE Uganda Hotel Owners Association (UHOA) have written to the finance ministry protesting the local government tax. UHOA’s complaint is being channelled through the trade ministry.
“We have written to the trade ministry which has also written to finance complaining of two types of taxes,†said Ismail Sekandi, the UHOA executive director.
Sekandi explained that his members have asked the Government to waive taxes on specifically-designed vehicles used by tour operators as a way of attracting more investment in the sector.
“We are also consider the introduction of the local government tax on hotels and another levy being introduced in the Tourism Bill of February 2008 as double taxation in the sense that it is levied from our gross revenue,†he said.
The sector contributes 10% to the national’s gross domestic product.
ct and earns Uganda $320m in export earnings,†,†Sekandi said last week. This was during the Presidential Investor Roundtable at Imperial Royale Hotel in Kampala.
He disclosed that the sector was experiencing real growth in tourist arrivals according to the Uganda Bureau of Statistics and increased investments.
“However, the sector is characterised by inadequate services like lack of internationally-rated manpower, affordable accommodation in tourist sites upcountry, lack of access roads, internal air travel and the slow Internet connectivity,†Sekandi stated.
He said there was lack of information on tourist products and minimal efforts at branding products, making it difficult for Uganda’s own products to be known internationally.
“The situation is aggravated by the high costs of doing business. Utilities are rated at 30% of total expenditure. This affects the competitiveness of the sector,†Sekandi added.
“There is need to market alternative energy options and offering of energy rebates to the sector,†he suggested.