TRA clarifies tourism levy, dispels misconceptions on guesthouse charges

Dar es Salaam. The Tanzania Revenue Authority (TRA) has clarified that there is no tax levied per bed in guesthouses, countering recent reports suggesting otherwise.

Instead, the authority confirmed that the so-called tourism development levy applies only to certain registered hotels and is based on daily accommodation fees paid by tourists.

TRA’s Kagera Regional Manager, Mr Castro, explained that the levy was introduced by the government under Section 59(1) of the Tourism Act, 2008, to support the development of the country’s tourism sector.

The applicable establishments are those officially registered and gazetted by the government, as outlined in Government Notice (GN) 823 of 2 October 2020.

This levy is not a new measure, Mr Castro noted, emphasising that it has long been applied to owners of buildings providing accommodation for both domestic and international visitors under the regulations published in GN No. 352 of 1 October 2013.

Owners of registered guesthouses or hotels are required to remit one per cent (1pc) of the room charge paid by each guest.

Returns and payments must be submitted before, or by, the last day of the following month.

TRA’s clarification aims to correct public misunderstandings and ensure that tourism businesses comply with existing legal frameworks while continuing to contribute to the sector’s growth.