GOVERNMENT travel caps
for domestic accommodation
and meals have been revised
upwards by 2%-3%.
While Treasury sent
notification to government
departments last month,
TMCs canvassed by TNW had
not yet been informed about
the revisions.
New caps for five-star
hotels are R2 140, R2 250
and R2 570 for bands one,
two and three respectively.
New caps for four-star hotels
are R1 275, R1 380 and
R1 595.
The revisions are to
allow for the increase in
VAT as well as sugar tax,
and follow engagement
between Fedhasa (Federated
Hospitality Association of
South Africa) and
the government.
Tshifhiwa Tshivhengwa,
Fedhasa ceo, said as a
result of the increases it
would be difficult to retain
government clients without a
corresponding review of the
maximum caps.
While Fedhasa has
welcomed the revisions,
Tshifhiwa said they were not
enough to compensate for
rising inflation.
