The Tanzania Revenue Authority (TRA) has refuted claims that guesthouse owners are required to pay tax per bed, stressing that no such levy exists.
Instead, the authority clarified that the applicable charge is the Tourism Development Levy, which is calculated on room charges and only applies to officially registered hotels and guesthouses.
TRA’s Kagera Regional Manager, Mr. Castro, explained that the levy was established under Section 59(1) of the Tourism Act, 2008, as part of efforts to support the growth of the tourism sector.
“This levy is not imposed per bed as reported. It is charged at the rate of one percent of the room fee paid by a guest, whether local or international,” he said.
He noted that the levy is applicable only to facilities listed in Government Notice No. 823 of October 2, 2020, and governed by regulations published in GN No. 352 of October 1, 2013.
Facility owners are required to submit returns and remit the levy before or by the end of the following month.
Mr. Castro stressed that the measure is not new and is designed to ensure fairness and transparency in the tourism sector, while avoiding unnecessary burdens on smaller operators.
He further explained that the levy contributes to the development of tourism infrastructure and services, which benefit both visitors and local communities.
The clarification comes after concerns circulated among guesthouse owners that they were being taxed on a per-bed basis, creating confusion in the hospitality industry.
TRA emphasized that operators should refer to official notices and engage directly with the authority to obtain accurate information on taxation matters.