The Tour Operators Association of Bangladesh (TOAB) today called for the continuation of the existing VAT exemption on tour operator services, which is planned to be withdrawn in the proposed national budget announced on June 6.  

TOAB came up with the demand at a press conference held at the Nasrul Hamid Auditorium, Dhaka Reporters Unity (DRU). 

In this context, TOAB President Md. Rafeuzzaman, also the 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.  

Rafeuzzaman said 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 pointed out that the package price and travel cost will increase significantly, as tour operators provide services to tourists by combining all the mentioned tourism elements.
 

“As a result, the entire tourism industry, especially inbound and domestic tourism, will be severely affected,” he added.
 

The TOAB president said that the withdrawal of the existing VAT facility may hinder the development of a thriving tourism industry in Bangladesh, as the industry is vast and multi-sectored. 
 
He also mentioned that the tourism industry can both earn and save hard-earned foreign exchange through tour operators. 

TOAB will submit a memorandum to the finance, civil aviation and tourism ministers soon to carry on the existing 15 percent VAT exemption on tour operator services, Rafeuzzaman told the reporters.   

Immediately after the budget announcement, a delegation led by the TOAB President met with FBCCI President Mahbubul Alam to discuss the withdrawal of the proposed VAT on tour operator services. 

TOAB Vice President Anwar Hossain, directors, advisors, and members, among others, were present at the press conference.