Tour operators unhappy with 15% VAT imposed
A 15% VAT has been imposed on tour operators in the proposed budget of FY25.
The tour operators said it will heavily impact on the tourism industry which is already struggling to attract foreign tourists for poor policy support and services.
"We purchase service from hotels, restaurants, and transport companies for tourists. All of these service providers pay VAT separately. If we have to pay VAT, how can we manage it?" Syed Mahbubul Islam (Bulu), former director of Tour Operators Association of Bangladesh (Toab) told TBS.
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Fearing that the flow of foreign tourism may fall, he said, "Already the service related costs including accommodation fees are high in Bangladesh in comparison to neighboring countries. Now, the new Vat will push the price which will affect tourist flow," he added.
Bangladesh has attracted 6.5 lakh foreign visitors in the last year which is significantly lower than India, Maldives, and Sri Lanka.
