Operators in the tour and travel sector in Ethiopia protested against the revocation of duty free privileges enacted by the Ethiopian Revenues and Customs Authority.
The association representing Tour and Travel companies said the decision to revoke the duty free status of vehicles imported by players in the sector was unfair and requested an intervention from the Ministry of Culture and Tourism to mediate the situation.
ERCA reached the decision because most of the vehicles imported by Tour and Travel companies are not being used for the purposes intended according to a letter signed by Gebrewahid Gebregiorgis, Deputy Director of the tax authority.
The vehicles are primarily being used for rental businesses which is not why the privilege was afforded noted the letter which demanded that companies pay the duty that had been lifted.The logic behind this reasoning is unacceptable as tour operators normally rent cars at reasonable prices during peak seasons when some operators are inundated with tourists and others are relatively less busy according to operators.
The association called an emergency meeting to discuss the situation last week and announced that it would be forced to refer the case to the office of the Prime Minister should the MoCT be unable to intervene.
ERCA has taken possession of an estimated 70 vehicles imported by tour and travel companies so far according to sources.
Source: The Reporter
