The Tour Operators Association of Bangladesh (TOAB) on Tuesday urged the government to maintain the current VAT exemption on tour operator services, which is slated for removal in the proposed national budget announced on June 6.

This call was made during a press conference convened at the Nasrul Hamid Auditorium, Dhaka Reporters Unity (DRU).

TOAB President Md. Rafeuzzaman, who also serves as the chairman of the FBBCI Travel, Tour, and Hospitality Standing Committee, emphasized the importance of retaining the existing VAT benefits for tour operators to foster further growth in the tourism sector.

He said that VAT was presently waived on a range of tourism-related expenses, including hotel accommodation, transportation tickets, restaurant bills, entrance fees to tourist sites, and amusement park tickets.

Rafeuzzaman said that tour operators bundle these elements to provide comprehensive services to tourists, and any increase in costs would significantly impact the overall tourism industry, especially inbound and domestic tourism.

Expressing concern that withdrawing the current VAT exemption could impede the expansion of Bangladesh’s vibrant tourism industry, Rafeuzzaman emphasized its broad, multi-sectoral significance.

He also stressed the role of tour operators in both generating and conserving foreign exchange reserves.

TOAB intends to formally petition the finance, civil aviation, and tourism ministries to uphold the existing 15 percent VAT exemption on tour operator services.

Rafeuzzaman informed reporters that a memorandum to this effect would be submitted shortly.

The press conference was attended by TOAB Vice President Anwar Hossain, along with directors, advisors, and members of the association.