President of Tour Operators Association of Bangladesh (TOAB) Md Rafeuzzaman on Tuesday demanded to maintain the existing VAT benefits of tour operators for the sake of developing the tourism industry.

Rafeuzzaman, also the Chairman of FBCCI Travel, Tour and Hospitality Standing Committee, came up with the demand while speaking at a press conference held at the Nasrul Hamid Auditorium, Dhaka Reporters Unity (DRU), said a press release.

The Finance Minister proposed to withdraw the existing VAT exemption on tour operator services in the proposed budget announced on June 6

Because tour operators collect tourism elements from various sectors and create packages for convenient and comfortable travel for tourists.

TOAB demands withdrawal of VAT in tourism sector

VAT is given while renting a hotel room, purchasing a transport ticket, paying a meal bill at a restaurant, purchasing tickets for various tourist attractions and amusement parks, said the release.

Besides, tour operators provide services to tourists by combining all the mentioned tourism elements. Now, if VAT is applied to the tourism components which are added to the combined package, the package price and travel cost will increase significantly, it said.

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

Mohammed Rafiuzzaman elected TOAB president

As the tourism industry is a vast and multi-sector one, the withdrawal of existing VAT facility may hinder the development of a thriving tourism industry in Bangladesh.

By imposing vat in tour operation services, the tourism sector will be greatly hindered. Not only this, the tourism industry can both earn and save hard-earned foreign exchange through tour operators.

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

The TOAB president drew the attention of journalists to this matter so that this demand of TOAB would attract the attention of the authorities concerned.

Former CEO of Bangladesh Tourism Board (Additional Secretary) Jabed Ahmed, TOAB Vice President Md Anwar Hossain, TOAB IPP and governing body member of Bangladesh Tourism Board Shiblul Azam Koreshi, TOAB Director Director (Media & Public-Relation) Md Younus, among others, spoke at the Press Conference.