Amusement park visits, laundry services to get costlier

Visit to amusement parks is set to get costlier from the upcoming fiscal year 2024-25 (FY25) as the government has proposed to double the VAT on the entertainment services provided in the park.

Finance Minister Abul Hassan Mahmood Ali today (6 June) has proposed to increase the existing 7.5% VAT on amusement park services to 15%.

According to the Bangladesh Association of Amusement Parks and Attractions (BAAPA), there are currently around 300 amusement parks and theme parks across the country, 100 of which are members of the association. 

In this sector, the members of the association alone have an investment of around Tk12,000 crore.

The association's Chief Coordinator Anup Kumar Sarker told The Business Standard that the sector was included in the industrial sector in 2022 and taxes are generally reduced in the industrial sector.

"I don't understand why the VAT rate has been increased suddenly. Many investors have already gone to the brink of destruction due to Covid-19. They are trying to turn around now. But if the cost increases due to the new VAT rate, they will suffer again," he said.

Cost of mechanical laundry is increasing

The government has proposed to double the existing 7.5% VAT on mechanical laundry services to 15%, which in turn is set to increase the laundry expenses.

Aircraft parts import to get cheaper

The government has proposed to reduce the existing VAT and duty on import of turbo-jet, aircraft parts, equipment. This has created an opportunity for private airlines to cut costs.