Hoteliers demand tax waiver on goods, services 

Hotel, motel, resort, and guest house owners have urged the government to waive taxes on goods and services to overcome losses caused by the Covid-19 pandemic.

Demanding necessary allocations in the upcoming national budget, they have also urged to brand Bangladesh in the tourism sector through the tourism board and recommended formulating a guest house development policy.

The members of the Federation of Bangladesh Chambers of Commerce and Industry’s (FBCCI) Standing Committee on Hotel, Motel, Resorts and Guest House Development made the recommendations at its first meeting at the federation’s office in the capital on Tuesday.

They said hotels, motels, resorts, and guesthouses are integral parts of tourism, but the owners have to pay huge tariffs on the equipment and products they import in order to ensure modern facilities for foreign tourists, according to a press release. 

The owners also have to pay VAT on services while a 37 per cent tax has to be paid on income. This huge tax burden keeps the sector from flourishing.

The committee further said the coronavirus pandemic had almost destroyed the business of hotels, resorts, and guesthouses.

To attract foreign tourists, it demanded relaxing the obligation to undergo Covid-19 testing 48 hours before the flight and simplifying the visa process.

FBCCI Senior Vice President Mostofa Azad Chowdhury Babu, who joined the meeting virtually as the chief guest, said the business of hotels, motels, and guesthouses was among the hardest hit by Covid-19.

He said the sector had been playing an important role in earning foreign exchange. He also urged the committee to find out the possibilities, problems, and solutions in this sector, and submit those to the FBCCI in the form of a proposal.

Mostofa said the matter would be discussed with the government’s policymaking body after considering the proposal.

The committee’s Chairman Khabir Uddin Ahmed said at least three of the 17 United Nations Sustainable Development Goals (SDGs) are directly linked to tourism.

“Other goals indirectly depend on tourism development. To achieve SDGs by 2030, the country’s tourism industry must be developed.”

FBCCI Director Syed Moazzem Hossain called for ensuring quality services for tourists at reasonable prices in hotels and resorts. He also called for apprentice programmes to create skilled manpower in this sector.

FBCCI Secretary General Mohammad Mahfuzul Hoque said the federation had attached due importance to tourism development. “It has also included this sector in the agenda of the Canada-Bangladesh Joint Working Group.”

Also present at the meeting were the committee’s Co-Chairman Khandaker Ruhul Amin, Taofiq Uddin Ahmed, Mohiuddin Helal, AHM Aminul Islam Bhuiyan, Md. Mahbub Alam, Mohammad Jahangir Alam, Mehdi Amin Chowdhury, and other members.