Tour Operators Association of Bangladesh (TOAB), the apex tourism association in the country, demanded withdrawal of the 15 per cent value added tax (VAT), imposed on the tour operators in the budget proposal for FY25.
TOAB President Md Rafeuzzaman made the call in a budget reaction press conference by the tour operators, held at the Dhaka Reporters Unity’s Nasrul Hamid Auditorium on Tuesday.
Rafeuzzaman added, “Tour operators collect tourism elements from various sectors and create packages for convenient and comfortable travel for tourists.
“VAT is charged while renting a hotel room, purchasing a transport ticket, paying a meal bill at a restaurant, purchasing tickets for various tourist attractions and amusement parks. It even applies to other tourism services. Tour operators provide services to tourists by combining all the mentioned tourism elements.”
He then pointed out, “If VAT is applied to the tourism components, those will add up in the combined package, the package price and travel costs will increase significantly. As a result, the entire tourism industry, especially inbound and domestic tourism, will be severely affected.
“As the tourism industry is a vast and multi-sectoral one, the withdrawal of existing VAT facilities may hinder the development of a thriving tourism industry in Bangladesh.”
Mentioning that around 4 million people are directly and indirectly involved in the country’s tourism sector, the TOAB president said, “Our tourism industry is an export product, and 90 per cent is private sector investment.
“People in other sectors get various incentives to export, but we do not. Under such circumstances, by imposing VAT in tour operation services, the tourism sector will be greatly hindered. Besides, the tourism industry can both earn and save hard-earned foreign exchange through tour operators, which could also be disrupted.”
The TOAB vice president, secretary, directors, advisors, honorary members, and journalists from print and electronic media were present at the press conference.
