From All Africa

President Michael Sata has opposed a new tax proposal by the African Union (AU) which seeks member States to contribute more from tourism earnings in form of ticket and hotel charges.

Zimbabwe, Algeria, Chad and Egypt have backed President Sata’s stance stating that this will stifle efforts to boost tourism and provide taxation relief on economies.

The proposal aims to deduct US$10 from ticket earnings gained from air travel by anyone travelling in and out of the country and $2 on hotel bookings by tourists. The earnings are supposed to be channelled to the AU.

Mr Sata said the move would trigger price hikes and maintained that the proposal was not a good idea.

“Zambia has overpaid for the maintenance of the OAU/AU and all organisations we are affiliated to. Sometimes we pay two years in advance.

Read more at allafrica.com