The Tanzania government is imposing an Last Minute 18% VAT on trophy fees, observers, and Hunting permits - effective on 1 July.

There is lots of Rumors and discussions between Clients and Outfitters.

Sure same Cancellations will follow

Is anybody of you Planing to Go there this year or will Cancel the Safari ?!

Another thread dealing with the same.

http://forums.accuratereloadin...1411043&m=9161047222

The expense and these types of last minute changes are just too unsettling and insulting to ever bother with Tanzania. I wouldn't go even if I had some rich relative (I don't) leave me a boatload of money.

I agree with GunsCore. Tanzania has always been out of my price range, but things like this just make it more unattractive. Eventually these African governments, with all their ancillary fees, are going to kill the proverbial golden goose.

It is if they hired a PR firm to come up with a campaign of decisions to assure that their country will be priced out of the hunting game...FOREVER. If so, Job Well Done!
The mis- management of funds, corruption, and ever ready battle cry of " just charge more" to cover our never ending financial woe's was born in Tanzania, but being copied all over Africa.
And I sell AFRICA for a living! I know how a salmon forever swimming up a waterfall must feel like.

I have been a few times . The last being 2006 and 2007. The lion closure in 06 and the last minute price changes pissed me off badly. I said I was not going back. I had been waivering a bit lately. Not any more. The hell with them.

Maybe they just want to run everybody out so they can take everything for themselves?

As usual, this is a very short sighted move by the government. Everybody there wants money today at the expense of tomorrow…

I wouldn't be surprised to see this new tax eliminated. I'm sure the powerful players in the tourism industry in TZ will sort things out although they may have to take on a few new partners.

If someone had a 21 day hunt booked for the end of July or beginning of August and the bill was paid in full now I can't see them cancelling at this point if the tax is only on the trophy fees and hunting permits.
It seems like the government there feels like the hunter's wallet is endless. Tough for the operators for sure as well.

When people like the Friedkins who have given/committed $300,000,000 to wildlife conservation in Tanzania get screwed by the Tanzania government in favor of Green Mile......

Tanzania has priced itself out of the market for most hunters in the last 10 years. It would be interesting if any of the Tanzania members of AR could comment on the number of concessions turned in, or taken for lack of payment since the last allotment.

Third world countries. Third world minds. Third world decisions. Will Tanzania ever raise itself from the dregs of the third world.

http://allafrica.com/stories/201607190328.html



Tanzania: Magufuli Closes Debate On Vat


By Deogratius Kamagi



Dar es Salaam — President John Magufuli said yesterday the government would not review its decision to impose Value Added Tax on the tourism sector.

Addressing newly promoted senior police officers at State House, Dr Magufuli said the government would not give in to pressure from tour operators or their foreign agents.

VAT imposed on tourism services has been strongly opposed by a number of industry players, who have been lobbying hard to have it scrapped.

Some groups had appealed for the President's intervention after Parliament passed the 2016/17 Budget last month. Local tour operators and agents in Europe wrote to the government recently, asking that the tax be suspended for a year.

Yesterday, however, President Magufuli poured cold water on any hopes that the government was ready to consider waiving the tax.



He said those who were required to pay the tax had no choice but to comply, adding that the government had no plan to review its decision.

Responding to the concern that Tanzania risked pricing itself out of the regional tourism market, President Magufuli said it was better to have 500,000 tourists who paid taxes than a million who did not.

"The country's development depends on the revenue we collect. This is the money that is used to implement various development projects, so there is no way we can remove VAT for the sake of maintaining a high number of tourists," he said.

"It doesn't make sense for the country to attract a big number of tourists, but fail to benefit from them."

President Magufuli said fears of a drop in the number of tourist arrivals would not prevent the government from implementing its development agenda. He also said VAT being charged at Dar es Salaam port would not be scrapped despite reports of a sharp fall in the amount of cargo passing through the port.

"It's clear that whoever uses our port must pay the requisite charges. We have no time for people who are reluctant to accept our terms. We would rather have fewer ships docking at the port."

The Head of State said there would be no "free money" during his time at State House, adding that everything would be done systematically according to rules and regulations.

"Some people are claiming that there are no guests in hotels, but this will not change our ambition...we are moving forward," he said in response to reports that hotels were closing down in various parts of the country as a result of the government's cost-cutting measures.

President Magufuli directed Inspector General of Police Ernest Mangu to transfer all civilians working with the Police Force and replace them with officers with the right qualifications.

This would promote integrity in the force and ensure proper use of funds, he said.


"Bring their names to Public Service Management so that they can be assigned other duties outside the Police Force. I'm sure we have qualified police officers for every position."

President Magufuli said all police departments should be manned by officers with the relevant qualifications.

He asked the promoted officers to stick to the integrity oath they took yesterday.

"I urge you to act professionally, respect everyone and never take this promotion for granted. It is up to you to prove that you deserve your promotion.

"Go about your duties without fear or favour...we trust you and expect you to boost the morale of those under you," Dr Magufuli said.

The Minister for Home Affairs, Mr Mwigulu Nchemba, challenged the promoted officers to be obedient and deliver as per the public's expectations.

He said the ministry would support them and ensure they deliver despite financial constraints and other challenges.

"You should now prove that you deserve your promotion. It is not easy to be trusted by the most trusted person in the country. I challenge you to abide by the oath you took today.

"Let's work much harder than before. The world is changing and we are likely to face many challenges accompanying such changes," Mr Nchemba said.

For his part, Mr Mangu thanked the President for promoting the officers, and asked them to serve the public and the country diligently.



"We will help the ministry ensure that these officers abide by the oath they have taken today and in case of any misconduct, I will let you know after we take appropriate measures," he told Dr Magufuli.

The ceremony also attended by Attorney General George Masaju, who asked the promoted officers to work in accordance with constitutional requirements.

Earlier, Ethics Secretariat Commissioner Salome Kaganda said she hoped the oath would lead to transparency and integrity among public officials and make Tanzania corruption-fee.

The promoted officers promised to work hard to meet the public's expectations.

"It's an honour to be here today. I promise to work even harder. It's a new challenge, but I'm ready for it," Senior Assistant Commissioner of Police (SACP) Renatha Mzinga, who is also the Lindi Regional Police Commander, told The Citizen.

SACP Onesmo Lyanga thanked the President for the recognition he had accorded him.

"I would like to thank His Excellency the President for the promotion. I'm indebted to him and the people I'm supposed to serve, and I promise that I won't let them down," the Simiyu Regional Police Commander said.

quote:

Originally posted by AilsaWheels:
When people like the Friedkins who have given/committed $300,000,000 to wildlife conservation in Tanzania get screwed by the Tanzania government in favor of Green Mile......

Tanzania has priced itself out of the market for most hunters in the last 10 years. It would be interesting if any of the Tanzania members of AR could comment on the number of concessions turned in, or taken for lack of payment since the last allotment.

Third world countries. Third world minds. Third world decisions. Will Tanzania ever raise itself from the dregs of the third world.

That would be very interesting information to see what blocks had been turned in. Also, it would be interesting to see what companies didn't take 40% of their quota. Maybe that's the reason for the new tax on trophy fees, etc. plus areas not being utilized are now "off the books"?

I'm sure there are two (or three or four) sets of rules for hunting companies owned by Tanzanians vs hunting companies owned by foreign entities.

Allocation to unknowns (locals) in the last area "go around" was probably only a front to allow illegal exploitation of hunting areas, especially those areas in and around the Selous GR and Ruaha NP.

Also, the point made about the Friedkins is a good one. They've put more dollars into conservation in TZ than all of the other hunting companies combined, and they still get screwed because some local guy wants an area.

I'm glad I hunted TZ in the past as I don't see the future shaping up very well. The TZ government just can't grasp the fact that in order to attract and keep quality operators they must create a business environment which allows companies the opportunity to make a profit. The government should know, they had their own safari company once and it wouldn't work financially and was really only a cover for illegal exploitation!

Is he trying to say that what half a million visitors spend in country is better than what a million spend??

Amazing!

I am happy to have spent so many wonderful days filming and hunting Tanzania. I feel I may have left my last boot track there, while carrying a rifle at least.

quote:

Originally posted by Saeed:
Is he trying to say that what half a million visitors spend in country is better than what a million spend??

Amazing!

It sure sounds that way.

When Magufuli was elected last year I figured he was just another CCM president. Then he took office, attacked corruption, fired government workers that didn't do their jobs, etc. and it seemed there was true hope for change.

When an individual comes of age in the days of Nyerere's "Ujamma", and his schooling is heavily tilted towards socialism/communism, it makes it hard to see the world the way it is instead of through the jaded glasses of socialism/communism. Hope Magufuli reads Adam Smith sometime.

There have been many poor decisions made in the past 55 years. There will be many more made. Here is to hoping good decisions will start balancing out the poor ones.

I still hold hope for the country. Not so sure that enough good decisions will be made soon enough to save all the wildlife. I don't see Tanzania getting as bad as Kenya in our lifetimes but it feels like it is in steady decline.

According to the UN, Tanzania will be the fifth post populated country in the world in the year 2100. Will there be room for the wildlife.

Tanzania is an amazing hunting destination - no doubt! I have had some incredible safaris in Tanzania, some of my very best.

The whole of the African continent is changing dramatically, especially in the safari industry - and much of it is self inflicted damage. This is simply another example of poor judgment and "tax" increases - in hopes of making up for a failing economic system. Those in power seem to think the tourist / safari hunter will come - no matter the cost. Take it from someone who sells safaris - that just ain't true!!!

Hopefully someone will come to their senses, but I'm not holding my breath!

I guess math is not the goats strong point.

It would seem to me that even the lowest of Govt. officials could determine that changing rates in the middle of the season is just plain stupid. It causes the whole industry one big headache.

Oh I did say Govt. didn't I!

Elasticity of demand really isn't so complicated.

I've been on 11 hunting trips to Africa. RSA, Zim, Namibia and Botswana. I crossed Tanzania off my bucket list many years ago. It's strickly a matter of cost. Tanzania may be a great place to hunt, but the costs are to high.

Yes or the in elasticity of demand curve . It will be interesting what the actual effect of a 18% Vat tax does to the tourism industry in Tanzania will do to over all volume

quote:

Originally posted by Brice:
Elasticity of demand really isn't so complicated.

I have been saving up for 5 years and just finished paying the last installment on my safari in June. We leave in late September. Haven't heard anything from my outfitter yet, but I expect I will soon. At any rate, I will be going regardless of this incredibly irritating, shortsighted and downright dumb decision. AWA.
kh

quote:

Originally posted by Saeed:
Is he trying to say that what half a million visitors spend in country is better than what a million spend??

Amazing!

Yep........ Maths and logic are difficult concepts.

Let's see... You get a million visitors spending two thousand dollars each. That's two billion dollars.

You tax the lot 20%, half of them say "Screw you", so you collect 20% from half a million visitors, which is 200 million dollars.

You just got 200 million dollars for free! Sooooo clever!!!!

Ok, you lost a billion dollars in income, but what's one billion lost, when you earned TWO HUNDRED millions...

Shall I start over again?

quote:

Originally posted by Saeed:
Is he trying to say that what half a million visitors spend in country is better than what a million spend??

Amazing!

Earn an extra 18% on half a million at the expense of 100% on half a million

African Math

If anyone wants to sell a cancelation hunt at an 18% discount, I have cash!!!!

quote:

Originally posted by dogcat:
If anyone wants to sell a cancelation hunt at an 18% discount, I have cash!!!!

I have heard of more than one request, if you are serious and can go short notice I bet you can find something.



This is only one change we have seen in the past year that is complete nonsense. The governments single minded drive on REVENUE REVENUE REVENUE has gone beyond all logic- people are now getting fined for not requesting a TRA receipt from vendors. Pure insanity. Expats and businesses are leaving, but the government carries on with this insanity. Kenya just took VAT off tourism because it was a disaster, hopefully TZ will learn quickly.

http://www.huntingreport.com/w...te.cfm?articleid=789


Tanzania-Bound Hunters Hit With Surprise 18% Value-Added Tax

(posted July 22, 2016)

In July, the Government of Tanzania decided to apply the national Value Added Tax (VAT) of 18% to all services rendered to foreign tourists, including hunters. Operators received only a week's notice before enactment. Until now, foreign tourists had been exempt from this tax.

After some initial uncertainty, it is now clear that the new tax applies also to hunting tourism and to foreign hunters visiting Tanzania.

The immediate introduction of the tax has created chaos. All hunts for this year and even many hunts for next year were sold without the tax, and most safari companies will be unable to cover the 18% tax themselves. What will happen now depends on the contracts that clients have, and whether provisions have been made for unexpected governmental taxes. All hunters who have a hunt booked in Tanzania are advised to immediately contact their operators about the tax.

We’ll have much more information in our August issue.

Get important news bulletins like this sent directly to your email 24 hours before anyone else sees them, plus unlimited access to our database of hunt reports and past articles, a special expanded electronic version of our newsletter and more! Upgrade your Hunting Report subscription to Email Extra today. Click here for more information.

The TZ Hunting Industry Leaders like Pansanisi etc. have Not anymore the Power to change the Gov. Decisions. Many Companys are extremly worried and it Looks like TAHOA can Do Nothing in the Moment. Every Company TRYS to Deal seperatly in this ISSUE....

Why anyone continues to bend over and get screwed by the TZ government and the outrageous charges for other services there(think charter costs), is beyond me. Fool me once, shame on you- fool me twice, shame on me.

quote:

Originally posted by mboga biga bwana:
The TZ Hunting Industry Leaders like Pansanisi etc. have Not anymore the Power to change the Gov. Decisions....

In a country looking to generate tax revenue, it doesn't look great when the name of the head of THOA appears in the "Panama Papers". Especially if he then tries to fight a tax increase that affects his businesses.

quote:

Originally posted by jdollar:
Why anyone continues to bend over and get screwed by the TZ government and the outrageous charges for other services there(think charter costs), is beyond me. Fool me once, shame on you- fool me twice, shame on me.

Jerry,

The charter cost issue has been thrashed to kingdom come. The prices are what they are and you can in greater part, blame it on the Oil, Gas & Mining companies who have money to throw away (literally).

The drillers are, BTW, mainly American & Canadian, so you know who to blame and the charter companies are simply making the most of it and why not? If the demand is there and prices are pushed to beyond reasonable limits because each company tries to out-do the other, that's tough shit.

With regards to actual hunting costs, i.e. trophy fees, taxes/royalties and recently the imposition of VAT, I couldn't agree more as it is basically a process of screwing the golden goose and leading the industry to self-destruction!

quote:

Originally posted by fujotupu:

quote:

Originally posted by jdollar:
Why anyone continues to bend over and get screwed by the TZ government and the outrageous charges for other services there(think charter costs), is beyond me. Fool me once, shame on you- fool me twice, shame on me.

Jerry,

The charter cost issue has been thrashed to kingdom come. The prices are what they are and you can in greater part, blame it on the Oil, Gas & Mining companies who have money to throw away (literally).

The drillers are, BTW, mainly American & Canadian, so you know who to blame and the charter companies are simply making the most of it and why not? If the demand is there and prices are pushed to beyond reasonable limits because each company tries to out-do the other, that's tough shit.

With regards to actual hunting costs, i.e. trophy fees, taxes/royalties and recently the imposition of VAT, I couldn't agree more as it is basically a process of screwing the golden goose and leading the industry to self-destruction!

You mean Africans might do something to self destruct?? No way!!!!!

quote:

In July, the Government of Tanzania decided to apply the national Value Added Tax (VAT) of 18% to all services rendered to foreign tourists, including hunters. Operators received only a week's notice before enactment. Until now, foreign tourists had been exempt from this tax.

Value Added Tax exists all over Europe and some of the more advanced African countries, e.g. South Africa and I believe the UAE has or will be adopting VAT yet nobody seems to bitch about that.

Non residents (tourists/visitors) are subject to VAT on any purchase of goods and/or services rendered, be it a restaurant or hotel bill or whatever item one may have purchased.

While some bills are not refundable, others are and can be claimed when leaving the country by presenting the receipts at the appropriate VAT claims office at the airport - this is fact and not fiction!

What is fact in Tanzania's case is that it was sprung at the last minute when a good number of clients had already booked and paid for a hunt and now faced with an increase of 18% across the board and quite frankly its a hit well below the belt.

Some consideration should have been made on a case by case basis and let it be known that from such and such a date, (when this tax was declared applicable) VAT would have been extended to include every fart let out.

If it be of any consolation, I would think a rebate is applicable to the VAT element exacted on trophies at the time of their exportation, much in the same way one claims for goods purchased and claimed for on departure.

I have had to deal with this constant increase in pricing for years...I finally came to the conclusion that the African gov. based on their upbringing can live comfortably on two million a year, or $200 a month and they just don't give a big rats a$$ what we think about it...They live in mansion with the windows broken out, wear blue serge suits during the day and nothing when they get home, their eating habits amaze civilized folks..They do not suffer from stress, and their give a sh--ter is totally in neutral, and it will never change...Just my assessment..

What is really sad the 18% VAT does to the local people that invested and intended to invest in Tanzania. The economic principle of substitution comes immediately into play. No well informed person is going to pay more for goods and services than what equally available goods and services are available elsewhere for less money. Im glad I was able to hunt Tanzania before this VAT was imposed. Tanzania government will find out they will suffer tremendous economic backlash. Unfortunately by the time the backlash is recognized tremendous harm will have occurred that will take years if ever to recover.

It's our own fault because we continue to bend over and pay for these ridiculous increases.

If as a whole, we all (that includes YOU to whom money is no object!) boycott Tanzania, you will see how fast and far the prices drop....including the outrageous daily rates!

They are raping us and we allow it.

quote:

Originally posted by Saeed:
Is he trying to say that what half a million visitors spend in country is better than what a million spend??

Amazing!

Africonomics is truly a dizzying subject of study!

http://allafrica.com/stories/201608150370.html



Tanzania Targets More Chinese Tourists

By Gadiosa Lamtey



Dar es Salaam — Tanzania Tourist Board (TTB) is targeting China in its efforts to attract more visitors.

The board recently organized a media trip of 20 Chinese journalists to Mikumi National Park saying the Asian country was among the emerging potential markets.

The journalists were expected to promote the local attractions in the Asian continent and the world at large through their publications.

The visit came after the Minister for Natural Resources and Tourism, Prof Jumanne Maghembe, directed the new TTB board of directors to look into other markets and promote attraction to increase the number of tourists from the current one million per year to three million targeted by 2018.

The rate of tourists from across China country has been increasing in the past years from 13,760 tourists in 2012 to 21,246 tourists in 2014, according to TTB managing director Ms Devota Mdachi.



"Basically, the two-day visit to Mikumi National Park is aimed at advertising our tourism sites to China which is a very huge potential market that can improve the number of visitors," she said

"China is a big nation with large population and they often like to make visits in big groups. We will continue promoting the sector to the world but China is among our priority countries this time," she added.

Ms Mdachi said the board also has been participating in tourism fairs taking place every year in Beijing as part of search for new markets.

For his part TTB principal public relations officer Geofrey Tengeneza added that during the tour the journalists promised to be good ambassador and well promote the sector in their country.

"I was with them in Mikumi and they were happy to see our tourism sites especially when they saw the famous big five animals," he said.

The Friedkin Foundation is world class. They have provided so much to Tanzania...in money and conservation.

Tanzania has kicked this great American pro-hunting Family/Org to the curb. It is a travesty!

I will NEVER spend another dollar there.

quote:

Originally posted by ledvm:
The Friedkin Foundation is world class. They have provided so much to Tanzania...in money and conservation.

Tanzania has kicked this great American pro-hunting Family/Org to the curb. It is a travesty!

I will NEVER spend another dollar there.

Americans should not invest in africa unless you are ExxonMobil and have real political power.

There is no real long term time consistency or rational time discounting in Africa.

Mike

quote:

Originally posted by ledvm:
The Friedkin Foundation is world class. They have provided so much to Tanzania...in money and conservation.

Tanzania has kicked this great American pro-hunting Family/Org to the curb. It is a travesty!

I will NEVER spend another dollar there.

Don't let it get to you, Lane. There are a number of members here who have stated they intend to continue hunting there regardless of being turned over a barrel. I guess the chance to shoot something unique trumps getting screwed...