The country’s tourism sector has urged the National Board of Revenue to provide them with policy support, such as duty-free import of tourist vehicles, in the upcoming budget.
At a pre-budget meeting with the National Board of Revenue yesterday, the sector people made the call.
They said the flourishing sector is now on the brink of collapse due to the ongoing political crisis.
The revenue authority began its month-long talks with stakeholders of the different sectors ahead of the national budget announcement for the fiscal year 2015-16.
People from hotels, restaurants and guest houses participated in the meeting.
NBR held meetings with the stakeholders from paper, printing, publications and film industries. The meeting was also with the clinic and diagnostic centres stakeholders yesterday.
Tour Operators’ Association of Bangladesh (TOAB) president Professor Dr Akbar Uddin Ahmed said the industry has incurred a massive loss due to the political turmoil over the last three years.
“In the last three years, we have lost around Tk10,000 crore in the political unrest.”
He urged the NBR to make the import of tourist buses duty-free. He said the buses will carry sign “Tourist Bus” and should be kept out of the purview of the political programmes.
TOAB president sought seven-year tax holiday for the sector.
He believed the annual earning from tourism would double increasing from Tk5,000 crore to Tk10,000 crore if the policy supports were given.
Khabiruddin Ahmed of Tourism Resort Industries Association of Bangladesh (TRIAB) demanded the NBR exempt VAT and provide duty-waiver for the resorts in rural areas for next few years.
Resorts in rural areas should be kept out of the income tax net for the next two years to help develop the sector, he said.
Both the TOAB and resort operators demanded the Value Added Tax on the hotel rooms be reduced to 7% from 15% now and 4.5% VAT be set on foods and other facilities from the current 7%.
Tour Developers’ Association president Jamilur Rahman requested the tax authority to introduce slab-based VAT system for the sector instead of imposition of single rate VAT of 15%.
The NBR is going to continue implementation of single rate VAT for all sectors with enactment of new VAT and Supplementary Duty Act in 2016.
NBR chairman Nojibur Rahman assured the businesses that their recommendations would be considered in the preparation of the budget.
NBR members Farid Uddin Ahmed and Parvez Iqbal, among others, also spoke at the meetings.