Tourism lobbies reject proposed air fare tax to help fund HIV care and treatment

[Guest guest]

Tourism lobbies reject proposed air fare tax

By NATION CORRESPONDENT

Posted Sunday, March 27 2011 at 21:32

Players in the tourism sector have opposed proposals for an air fare levy to

help fund HIV care and treatment.

The operators said the proposed tax would spell doom for them as well as the

economy.

The levy approach has also been rejected by Kenya Airways, on whom the

government's proposal hinges.

On Wednesday last week, Public Health and Sanitation minister Beth Mugo

announced a government plan to introduce a special tax on air tickets for

international flights originating from Kenya. (READ: Air fare tax to help fund

HIV care)

In the proposal, the minister argued that a charge of between Sh80 and Sh160 on

every ticket was an easy way to raise funds, adding that the programme would not

be unique to Kenya.

" A memorandum on the air levy should be ready for presentation in Cabinet in

about two months, " Mrs Mugo said.

But players in the tourism sector have warned that such a move would hurt an

already overburdened industry.

The Coast Tourism Association said it was opposed to levies that were " created

overnight to cover for failures in some ministries " .

" We are totally opposed to this haphazard proposal to introduce new taxes and

levies. Air travel is already expensive enough: why do we want to make it even

more costly? " asked Mr Mohammed Hersi, the vice-chairman of the Mombasa and

Coast Tourism Association.

Mr Hersi, who is also the regional general manager of the Sarova Hotels, asked

the government to address the corruption which he said takes a lot of resources

that should go towards purchasing anti-retroviral drugs.

Already, Mr Hersi said, the industry was shouldering a drop in tourists due to

the high fares caused by soaring oil prices.

http://www.nation.co.ke/News/Tourism+lobbies+reject+proposed+air+fare+tax+/-/105\

6/1134260/-/o5gvsg/-/index.html

[Guest guest]

Tourism lobbies reject proposed air fare tax

By NATION CORRESPONDENT

Posted Sunday, March 27 2011 at 21:32

Players in the tourism sector have opposed proposals for an air fare levy to

help fund HIV care and treatment.

The operators said the proposed tax would spell doom for them as well as the

economy.

The levy approach has also been rejected by Kenya Airways, on whom the

government's proposal hinges.

On Wednesday last week, Public Health and Sanitation minister Beth Mugo

announced a government plan to introduce a special tax on air tickets for

international flights originating from Kenya. (READ: Air fare tax to help fund

HIV care)

In the proposal, the minister argued that a charge of between Sh80 and Sh160 on

every ticket was an easy way to raise funds, adding that the programme would not

be unique to Kenya.

" A memorandum on the air levy should be ready for presentation in Cabinet in

about two months, " Mrs Mugo said.

But players in the tourism sector have warned that such a move would hurt an

already overburdened industry.

The Coast Tourism Association said it was opposed to levies that were " created

overnight to cover for failures in some ministries " .

" We are totally opposed to this haphazard proposal to introduce new taxes and

levies. Air travel is already expensive enough: why do we want to make it even

more costly? " asked Mr Mohammed Hersi, the vice-chairman of the Mombasa and

Coast Tourism Association.

Mr Hersi, who is also the regional general manager of the Sarova Hotels, asked

the government to address the corruption which he said takes a lot of resources

that should go towards purchasing anti-retroviral drugs.

Already, Mr Hersi said, the industry was shouldering a drop in tourists due to

the high fares caused by soaring oil prices.

http://www.nation.co.ke/News/Tourism+lobbies+reject+proposed+air+fare+tax+/-/105\

6/1134260/-/o5gvsg/-/index.html