Demand for withdrawal of VAT on tour operator services

by times news cr

2024-09-26 02:43:20

Tour Operators Association of Bangladesh (TOAB), the leading trade organization of the tourism industry, has demanded the withdrawal of VAT on tour operator services to improve the current situation of the tourism industry.

Besides, the organization has also informed about canceling the guarantee mentioned in the rules of Tour Operator and Tour Guide Act and removing various anomalies.

Maulana Mohammad Akram Khan Hall of the National Press Club on Wednesday (September 25) made this demand in a press conference. Rafeuzzaman.

The first president of Towab, Abul Kalam Azad, vice president Md. Anwar Hossain, recently former President of TOWAB and Governing Body Member of Bangladesh Tourism Board Shiblul Azam Qureshi, Director (Media and Public Relations) of TOWAB Mohammad Yunuch and others.

Towab president. Rafeuzzaman said, the new gazette regarding the registration of tour operators has mentioned some rules and conditions, which are difficult for us to comply with. The tourism industry will suffer if the regulations and policies mentioned in the gazette are implemented. According to the rules, tour operator and tour guide (registration and management) license application fee of Tk 50 thousand, bank status certificate of Tk 10 lakh and security deposit of Tk 3 lakh, which is not feasible for tour operators. This will discourage new entrepreneurs to advance the country’s tourism industry in the future.

He said, for the sake of the tourism industry, the imposition of tax on the services of tour operators should be abolished. Because tour operators collect tourism elements from various sectors and create packages for tourists’ convenience and comfort.

Towab president said, now if Musak is demanded again in the combined package of tourism elements, or if 15 percent Musak is levied on tour operator services, the cost of travel will increase a lot. The tourism industry may be affected by it. For this reason, VAT should be withdrawn on tour operator services.

Other demands of Twab are – reduction of tour operator and tour guide (registration and management) license and renewal fees and bank status and cancellation of security, recognition of export products, incentives and other facilities to inbound tourism to earn foreign exchange, road transport used for tourists , providing tax-free/concessional facilities on boats, accommodation, various equipments, stop deducting 10 percent advance tax (AIT) on the total bill of foreign exchange/remittances collected by inbound tour operators through banking channels, continue operation of tourist boats in Sundarbans throughout the year, for tourists in hilly areas. Facilitate obtaining permits and creating alternative routes to travel from Teknaf to Saint Martin.

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