The Tour Operators Association of Bangladesh on Tuesday called for continuation of existing VAT exemption on tour operator services, which is planned to be withdrawn in the proposed national budget announced on June 6. 聽
TOAB came up with the demand at a press conference held at the Nasrul Hamid Auditorium, Dhaka Reporters Unity.聽
In this context, TOAB president Md Rafeuzzaman, also chairman of the FBBCI Travel, Tour and Hospitality Standing Committee, demanded the continuation of the existing VAT benefits for tour operators to further develop the tourism industry. 聽
Rafeuzzaman said that VAT was 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 pointed out that the package price and travel cost would increase significantly, as tour operators provide services to tourists by combining all the mentioned tourism elements.
鈥楢s a result, the entire tourism industry, especially inbound and domestic tourism, will be severely affected,鈥� he added.
The TOAB president said that the withdrawal of the existing VAT facility might hinder the development of a thriving tourism industry in Bangladesh, as the industry was vast and multi-sectored.聽
He also mentioned that the tourism industry could both earn and save hard-earned foreign exchange through tour operators.聽
TOAB will submit a memorandum to the finance, civil aviation and tourism ministers soon to carry on the existing 15 per cent VAT exemption on tour operator services, Rafeuzzaman told the reporters.
