Proposed Mombasa County levies amount to double taxation, hoteliers say

Hoteliers in Mombasa have rejected the county government’s proposed accommodation and catering levies of up to Sh120,000 per year.

According to the 2015/2016 finance bill, big hotels, lodges and houses offering accommodation and catering services will be charged Sh120,000 a year while hotels with 41 to 100 rooms will be charged Sh80,000.

Small hotels and lodges with up to 40 rooms will be charged Sh40,000 while a big lodge with a restaurant and a bar will pay Sh67,500.

Medium lodges with a restaurant and bar will be charged Sh37,500 while a lodge with over 15 rooms to be charged Sh48,000.

A membership club which offers accommodation, restaurant and bar services will be charged Sh200,000 while casinos and night clubs will pay Sh100,000 per year.

On the other hand, the county proposes to charge a room levy of between Sh120 and Sh180 per month per occupancy for both non-rated and rated hotels.

Non-rated hotels and guest houses will be charged Sh120 per room occupied per month while one-star and two-star hotels are supposed to pay Sh150 per room occupied per month.

The county proposes to charge Sh180 per room occupied per month for three-star and five-star hotels.

DOUBLE TAXATION

However, Kenya Association of Hotelkeepers and Caterers (KAHC) Coast executive officer Sam Ikwaye Thursday opposed the accommodation and catering levies, saying hotels are already paying catering levy to the Tourism Fund.

“We strongly oppose the county’s accommodation and catering levy as it will amount to double taxation,” Mr Ikwaye said.

“For the last two years, hotels have been enduring low business. It is appalling that the county wants to burden hotel owners with more levies,” he added.

He called on the county government to find other alternatives of generating revenue rather than imposing levies which are already taxed by the national government.

However, Mr Ikwaye said hotels have agreed to pay the proposed room levy of between Sh120 and Sh180 per room occupied per month.

The KAHC official explained that hotels will pay the room levy on condition that the county ensures that all properties which offer accommodation also pay the room fee.

BETTER SERVICES

“Provided that the county delivers better services to the hotel industry, we will be willing to pay the proposed room levy,” he said.

Efforts to reach the county’s Tourism executive Tumbo Odhiambo for comment were fruitless as his telephone went unanswered.

But Finance executive Hazel Koitaba said the county chiefs will hold talks with the hoteliers to address their concerns.

She explained that there was still room for negotiations as the county was still receiving memorandums from various stakeholders.

“We want to assure the private sector that the county is ready to listen to their concerns before we reach an agreement on the proposed levies,” she said.

“For the county to deliver better services to the public, there is need for the business community and residents to pay revenue,” she explained.

The county government has also met opposition from exporters and importers over the proposed raft of port levies.