Section 5: The Development of Tourism Act, 1990, is amended-

(a) in section 30 thereof – (i) by the repeal of paragraph (b); (ii) by the repeal and replacement of paragraph (c) by the following:- “ (c) relief from income tax– (i) for a period not exceeding five years; and (ii) in value, not exceeding, during the tax holiday period,one hundred and fifty percent of the original capital invested;”; (iii) by renumbering the section as subsection (1) and inserting the following as subsection (2):– “(2) In paragraph (c) of subsection (1), the expression “original capital invested” means, for the purposes of taxation, both the equity and non-equity capital initially utilized in setting up the business”. (iv) in subsection (1), by the insertion immediately after the words “amenity” of the following:- “with a minimum number of rooms for hotels established in the Western Area of 50 rooms and 10 rooms for the rest of the country”. (b) by the repeal and replacement of section 31 by the following:– 31. Capital allowances on any asset utilized in the development of tourism shall be deducted from the profits or other income before tax in accordance with the provisions of the Seventh Schedule to the Income Tax Act, 2000: Provided that an investment allowance of sixteen percentum of the costs may be granted but such investment allowance shall not be deductable in ascertaining the residue of the expenditure for the purpose of a balancing allowance or balancing charge.” (c) in section 32 thereof, by the substitution for the words “Part VI of the Income Tax Act” of the words “Part IV of the Income Tax Act, 2000”; 2 3 of Cap. 271. “Revenue stamps for tobacco and alcohol products of Act No. 16 of 1972. of Act No. 7 of 1988. “Capital allowances of Act No. 11 of 1990. (d) in section 34 thereof, by the deletion of the word “easily” appearing in subsections (1) and (2) thereof; (e) by the repeal and replacement of section 35 thereof by the following:– 35. Tax relief for the employment of expatriate staff for the purposes of tourism development may be obtained under the Pay-roll Tax Act, 1972”.