Staff Reporter :
The Tour Operators Association of Bangladesh (TOAB) yesterday urged the government to maintain the existing VAT exemption on tour operator services, a benefit slated for withdrawal in the proposed national budget announced on June 6.
At a press conference held at the Nasrul Hamid Auditorium, Dhaka Reporters Unity (DRU), TOAB President Md. Rafeuzzaman emphasized the importance of continuing the VAT exemption to foster the growth of the tourism sector. Rafeuzzaman, who also chairs the FBCCI Travel, Tour and Hospitality Standing Committee, argued that VAT applies to several components of the tourism industry, including hotel room rentals, transport tickets, restaurant meals, and tickets to tourist attractions and amusement parks.
“VAT is imposed on a wide array of tourism services,” Rafeuzzaman stated. “As tour operators bundle these services, removing the VAT exemption would significantly increase package prices and travel costs, thereby adversely affecting both inbound and domestic tourism.”
The TOAB president expressed concerns that the withdrawal of the VAT facility could stymie the development of a burgeoning tourism industry in Bangladesh, highlighting its vast and multi-faceted nature. He also noted the industry’s potential to generate and conserve foreign exchange through tour operations.
In a bid to preserve the VAT exemption, TOAB plans to submit a memorandum to the finance, civil aviation, and tourism ministers. Rafeuzzaman assured that the association would continue to advocate for the 15 percent VAT exemption on tour operator services.
Following the budget announcement, a TOAB delegation led by Rafeuzzaman met with FBCCI President Mahbubul Alam to discuss the potential repercussions of the proposed VAT changes on tour operator services.
The press conference was attended by TOAB Vice President Anwar Hossain, along with directors, advisors, and members of the association, all voicing unified support for the continuation of the VAT exemption.