The Tour Operators Association of Bangladesh (TOAB) today (11 June) called for the continuation of the existing VAT exemption on tour operator services, which is planned to be withdrawn in the proposed national budget announced on 6 June.
TOAB made the demand at a press conference held at the Nasrul Hamid Auditorium at Dhaka Reporters Unity (DRU).
TOAB President Md Rafeuzzaman, also the chairman of the FBBCI Travel, Tour and Hospitality Standing Committee, said the need to maintain the VAT benefits for tour operators to further develop the tourism industry.
“VAT is provided while renting a hotel room, purchasing a transport ticket, paying a meal bill at a restaurant, and purchasing tickets for various tourist attractions and amusement parks. It even applies to other tourism services," he said.
Rafeuzzaman warned that removing the VAT exemption would significantly increase package prices and travel costs, negatively impacting the entire tourism industry, especially inbound and domestic tourism.
“As a result, the entire tourism industry, especially inbound and domestic tourism, will be severely affected,” he added.
He noted that the withdrawal could hinder the development of a thriving tourism sector in Bangladesh, which is vast and multi-sectored.
He also pointed out that the tourism industry can generate and save foreign exchange through tour operators.
TOAB plans to submit a memorandum to the finance, civil aviation, and tourism ministers soon to retain the existing 15% VAT exemption on tour operator services, Rafeuzzaman told reporters.
Following the budget announcement, a delegation led by the TOAB President met with FBCCI President Mahbubul Alam to discuss the proposed VAT changes.
TOAB Vice President Anwar Hossain, along with directors, advisors, and members, attended the press conference.
