The Tour Operators Association of Bangladesh (TOAB), the leading tourism association in the country, has called for the removal of the 15 percent value-added tax (VAT) imposed on tour operators in the FY25 budget proposal. This demand was made by TOAB President Md Rafeuzzaman during a press conference held at the Dhaka Reporters Unity’s Nasrul Hamid Auditorium on Tuesday.

Rafeuzzaman explained that tour operators assemble various tourism elements to create convenient and comfortable travel packages for tourists. “VAT is charged on hotel room rentals, transport tickets, meal bills at restaurants, and tickets for tourist attractions and amusement parks,” he stated. “Tour operators provide services by combining all these elements.”

He further emphasized that applying VAT to these components would significantly increase the overall cost of travel packages. This, in turn, would negatively impact the entire tourism industry, particularly inbound and domestic tourism. “The withdrawal of existing VAT facilities may hinder the growth of a thriving tourism industry in Bangladesh,” he added.

Highlighting the importance of the tourism sector, Rafeuzzaman noted that approximately 4 million people are directly and indirectly involved in it. He pointed out that the tourism industry is considered an export product, with 90 percent of investments coming from the private sector. “People in other sectors receive various incentives to export, but we do not,” he said. “Imposing VAT on tour operation services will greatly hinder the tourism sector. Tour operators help earn and save foreign exchange, which could also be disrupted.”

The press conference was attended by TOAB’s vice president, secretary, directors, advisors, honorary members, and journalists from both print and electronic media.