Tour operators demand VAT exemption, regulatory reforms
Tour Operators Association of Bangladesh (TOAB), the apex association of the country’s tourism sector, have demanded withdrawal of the 15% VAT imposed on tour operator services.
At a press conference held at the National Press Club today (25 September), the association also urged the government to address the discrepancies in the “Tour Operator and Tour Guide Act, 2024”.
Addressing the event, President of the association Md Rafeuzzaman said to secure a licence under the new rules, tour operators must pay a registration fee of Tk50,000, provide a bank status certificate demonstrating a balance of Tk10 lakh, and deposit Tk3 lakh as security.
Mentioning that such conditions are proving to be impractical for tour operators, he said, “This will discourage new entrepreneurs to advance the country’s tourism industry.”
He said to support the tourism sector, taxes levied on tour operators’ services must be removed. “These taxes are already included in the overall pricing of the packages offered by the operators.”
He said now if tax is again imposed on packages with tourism components, or a 15% VAT is levied on tour operator services, the cost of travel will go up a lot, causing an adverse effect on the industry.
Other demands of the association include recognition of export products, incentives and other facilities for inbound tourism; providing tax-free or concessional facilities on road transport, boats, accommodation, and various equipment used for tourists; discontinuation of deduction of 10% advance income tax on total bill of foreign exchange collected by inbound tour operators through banking channels.
They also called for easing permits for tourists in the Chattogram Hill Tracts (CHT) and establishing alternative travel routes from Teknaf to Saint Martin’s Island.
The association’s immediate past president Shiblul Azam Koreshi, Vice Presidents Abul Kalam Azad and Md Anwar Hossain, and Tourism Resort Industries Association of Bangladesh’s Founder President Khabir Uddin Ahmed, among others, were present at the event.
