Southern Africa’s Travel News Weekly
October 21 2009 I No. 2080
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TRAVEL NEWS WEEKLY
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Cough up for SA’s coffers Natalia Thomson
I
T is unlikely agents and their clients will be penalised for undercollecting WC tax on air tickets sold in SA after October 1. This is after agents were advised on October 9 through eTNW (Travel News Weekly’s sister online news service) of the new increases levied by the South African Revenue Service (SARS) applicable from October 1. SARS hiked the crossborder WC tax for Botswana, Lesotho, Namibia and Swaziland from R60 to R80 and from R120 to R150 for all other cross-border destinations. Although the notice to increase the WC tax was only gazetted on September 30 and dated October 2, airlines were told to enforce the difference retroactively for all tickets issued on or after October 1. But by October 9 the tax had still not been changed in the GDSs, say agents. “For any tickets we issued from Friday (October 9) onwards we changed the WC tax manually. Any tickets issued prior to the late notification have the old
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WC tax and any ADM that I receive I will fight,” said Trish Bezuidenhout, Harvey World Travel Hillcrest. But there may be no need to fight. The industry has issued thousands of tickets prior to the GDSs being changed to reflect the correct amount, and since the WC tax is collected from the traveller on the date of ticket issue and not on the date of travel, it is likely those passengers will not be asked to pay the increase. Asata president Laurie Wilkinson says it’s unfortunate that GDS systems were not correctly updated with the new WC tax levels for ticketing from October 1. “Asata will be contacting the various airline organisations to seek assurances that our members will not be penalised via ADM for the incorrect collection of this tax for the period in question.” Despite protests to the contrary, SARS says the industry has had months to prepare for the recent WC tax hike. “The proposed increase in the tax was first announced on page 67 of the 2009 Budget Review which To page 24
Bet on the USA! What happens in Vegas stays in Vegas. That’s the word from Holiday Tours, which is punting a great eight-night special at the three-star Circus Circus Hotel. The package, valid from November 8-26, includes return flights on Delta, airport taxes and return airport transfers from R13 690 ex-JNB and R14 390 ex-Cape Town. Up the ante and suggest this special, say Holiday Tours’ Go USA department (from left) Nicole Lopes, Heidi Dos Santos, François De Klerck (sales executive) and Nadia Wagener Photo: Tijana Huysamen
Downturn claims another casualty Jeanette Phillips THE challenging economic environment has claimed another victim in the travel industry. Pretoria–based tour operator Travel Crossings announced last week that it had been handed over for liquidation on October 8. Travel Crossings md, Jacques Bezuidenhout, says
several factors led to the downfall of the company. These, according to Jacques, include the huge downturn in the economy, the fact that certain airlines are “undercutting” their airfares to direct clients leaving tour operators in the cold, as well as “unfair competition” where suppliers favour certain operators by
giving them better rates. “Only a few clients will be affected by this step with the majority of bookings being completed and suppliers being paid,” says Jacques. David Traup Attorneys has been appointed as liquidators and has undertaken to contact affected clients individually. ■