KZN Tourism assesses proposed levy

KZN Tourism assesses proposed levy

KwaZulu-Natal Tourism MEC Mike Mabuyakhulu says they are currently conducting international surveys on the proposed 10% hospitality levy to assess how such taxes are structured globally.


The levy was expected to come into effect in April but has been temporarily suspended, following complaints by those in the industry. 

Mabuyakhulu says they have received recommendations from a committee set up to look into the matter.

"What we're speaking about has become a global phenomenon. Major cities in the world have indeed introduced their own levies. 

"There was an acceptance by all of those that were represented that the proposal is sound. What we're now dealing with is the structure of the levy rather than the issue of whether the levy should be introduced," he said. 

The National Accommodation Association of South Africa's Donovan Muirhead says there is still a lot of uncertainty around the levy.

"So, there's still a lot of questions that need to be answered as to who will be collecting, what's the collection mechanisms. Now the problem is if they implement this levy, this will now affect local business and the economy. 

"All these things are compounding and making it harder and harder for people to make a decent wage," he said. 

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