Tanzania to Drop tax on Wood Carvings

March 25, 2015 Taxation in Tanzania

DODOMA – Tourists and craftsmen in Tanzania will soon feel some relief from taxation as the government eyes abolishing an exorbitant tax on locally produced wood carvings.

In a speech delivered in Arusha late last week the Minister for Natural Resources and Tourism of Tanzania Lazaro Nyalandu indicated that the controversial tax on wood carvings paid by tourists will soon be abolished.

As of February this year tourists departing the country with locally purchased wooden carvings valued at more than approximately USD 300 will be required to pay a tax of USD 70, while carvings valued less than USD 300 will entail a levy of USD 16.

According to the Minister, the tax greatly hinders the government’s efforts to boost tourism in the country, as “…curios and hand-made crafts businesses have a close relationship with the development of tourism.”

In his speech the Minister also noted that a significant number of local artists have complained about the tax, as it has resulted in a decrease in sales, and, in addition, some tourists have also voiced their concerns, as the level of taxes paid has, in some cases, outweighed the value of the actual item purchased.

Photo By: Mike