Kenyan tour operators have supported the government‘s proposed 16% Value Added Tax  exemption on locally assembled tour vehicles.

They say the removal of VAT would bring down the cost of purchase of specially modified vehicles for game viewing.

Southern Sky Safaris Managing Director, Philemon Mwavala, said the proposal was in the right direction, adding that it would boost the tourism industry. “The VAT exemption on locally assembled vehicles will make tour companies purchasing new vans save a substantial amount of money.”

Kenya Association of Tour Operators Coast Branch Chairperson, Monika Solanki, also backed the government’s move, saying it would make tour vans affordable.

Last month, Kenya’s Treasury Secretary, Henry Rotich, proposed VAT exemption on locally assembled vehicles.

Presenting a budget statement for the financial year 2017/2018 at the national assembly, Rotich said tour operators would be encouraged to buy locally assembled tour vans.

The proposal comes at a time when the government is pushing tour companies to purchase specialised vehicles for safaris.

Last year, Tourism Cabinet Secretary, Najib Balala, said only vehicles specially modified to navigate the rough terrain in game parks and reserves would be allowed to carry tourists as Kenya moved to boost its safari offering.

Balala added that the minibuses that currently dominated the business would soon have to look for other alternatives. He asked tour firms to use specialised vehicles for transporting tourists to ensure comfort.