'$10 proposed tax on airport departures could hurt tourism sector'

Hakim Wampamba

Experts have expressed fear that the $10 tax that will be imposed on travellers departing the country could cripple the tourism sector.

The tax was first revealed in a report adopted by the Trade committee in Parliament.

Some tourism experts said the report will affect the sector, still reeling from Covid-19, by increasing the cost of air travel.

But according to the state minister for Tourism, Martin Mugarra, the tax is good as it will help collect revenue that will be used to develop the tourism sector.

An air ticket is currently levied a tax of  $47 with $ 40 going to CAA and $7 to URA. The addition of $ 10 increases the cost of an air ticket to $57.

Government has argued that the $10 tax will not reduce the departures for trade and other activities as travelling is inevitable, and that the reduction in the numbers of departures can only be attributed to the Covid-19 pandemic

Concerns have been high on the cost of domestic tourism ,a factor that accounts for much of the departures for tourism abroad.

Some tourism experts said his is the opportune time for government to go back to the drawing board and revise taxes that only target the tourism sector but do not result into direct gains to the sector.