TATO's lawyer, Mwasiti Msahara, urged Acting Arusha Regional Administrative Secretary Mr. David Lyamongi, who chaired the postponed meeting, to issue an immediate notice suspending the collection of the contentious service levy until a consensus could be reached.

In response, Lyamongi promised to consult his superiors on the matter and communicate the feedback accordingly.

This gesture indicated that the Government is considering the tour operators' plea and may address this contentious issue through further discussions and a potential review of the current levy system.

In a stunning turn of events, tour operators in April 4, 2024 issued a bold threat to cease from collecting the tourist entry and concession fees on behalf of the government, saying the transaction counts in their annual turnover, thus attracting a hefty service levy.

This unprecedented move came as a result of mounting frustration over what they perceive to be an excessive service levy burden that pegged at 0.3 percent of annual turn over, substantially stifling the tour operators’ profit margin.

“To address the historical injustice, TATO Members have decided that for a more efficient approach from 1st July 20204, TANAPA, NCAA and TAWA to directly collects payments from the tourists themselves. By doing so, we can streamline the process and reduce the administrative burden on TATO members” the letter added. 

"If the government does not address this issue, we will have no choice but to cease collecting entry fees on their behalf" TATO concluded.AS tourism high season commenced, Tour operators are pleading with the government to temporarily instruct local authorities to cease collecting the service levies on tour vehicles until a mutual agreement can be reached through joint discussions.

The Tanzania Tour Operators Association (TATO), led by chairman Wilbard Chambulo, has officially requested the President's Office Regional Administration and Local government (PO-RALG) to issue a directive instructing all local authorities to refrain from apprehending tourist vehicles for the collection of these levies until a consensus is reached.

Local authorities in northern Tanzania have been competing with each other in placing barriers for charging tourist vehicles on their way to Manyara, Tarangire, and Serengeti National Parks, as well as the Ngorongoro Conservation Area.

Tour vans taking holidaymakers to these major tourist attractions in northern tourism circuit have been subject to stop in each barrier paying service levies at multiple points just while in transit.

The tour operators and tourists cry foul, arguing that they were unfairly charged and the thick barriers along the way have also been unfairly robbing the tourists precious time.

"Imagine, from Kilimanjaro International Airport, we have been compelled to pay service levies to Hai District council, Meru district Council, Arusha District Council, Arusha City Council, Monduli District Council, Longido district council, Karatu District Council, Ngorongoro district Council, and Serengeti District Council," said Chambulo complained.

Chambulo said that his 300 plus members advocate for streamlining service levies collection in Tanzania’s tourism industry to save time.

They contend that the current decentralized approach, where each district independently collects taxes using its own methods and schedules, creates inconvenience.

Instead, they propose centralizing tax collection either through the Tanzania Revenue Authority (TRA), which boasts robust systems and structures, or directly through the PO-RALG.

For TATO, this harmonized approach would alleviate stress for the industry, sparing it from officials who lack insight into tourism operations and fall short in customer care.

The members of TATO call for the service levy to be collected net of third party payments, which largely comprised Government money.

The call for centralizing payments mode for these levies became a focal point when TATO members gathered in significant numbers over the weekend in Arusha to attend a shelved Government meeting scheduled to discuss the issue.