The Bangladesh Parjatan Corporation (BPC) has proposed to reduce taxes on liquor citing complaints from international tourists, but the matter is pending with the National Board of Revenue, sources said.
Foreign tourists often complain about the high tariff on liquor, which is much cheaper in other tourist destinations in South Asia.
NBR imposes over 600% tax on liquor that, in turn, encourages smuggling of the commodity, tourism sector experts said.
CEO of Bangladesh Tourism Board (BTB) Javed Ahmed told Dhaka Tribune that the government should revisit the high tariff on liquor by looking at the tax structures of countries like Thailand, India, Nepal, Sri Lanka, the Maldives and Bhutan.
“The high tariff on liquor is one of the barriers to attracting in-bound tourists in the country. This high tariff is also encouraging smuggling of the commodity, resulting in revenue losses for the government,” he added.
RAM Obaidul Muktadir Chowdhury, a lawmaker and chairman of the parliamentary standing committee on Civil Aviation and Tourism Ministry, said the committee has sent proposals to the relevant ministries to rationalize the tariff on liquor.
Citing an example of Morocco — a member of the Organisation of Islamic Cooperation (OIC) — he also proposed to develop exclusive zones to cater to international tourists.
Chowdhury, also a freedom fighter, said the Holy Artisan incident and Covid-19 have dealt a big blow to the tourism sector.
Tourism could generate more employment and investment
Bangladesh is working on promoting the tourism sector to generate more employment and bring in more investments, State Minister for Civil Aviation and Tourism Md Mahbub Ali said on Saturday.
The country has set a target to become a developed country by 2041, and as part of that strategy, the government is emphasizing the development of the tourism sector in the country, he added while speaking as the chief guest at a seminar marking the 50th founding anniversary of the BPC.
“The government is eyeing the development of ecotourism and medical tourism in the country, while protecting the environment and promoting our local culture,” Ali further said.
The state minister also said the corporation is implementing 12 development projects worth Tk335 crore to help boost the tourism sector.
BPC has implemented 20 development projects in the last 12 years.
AHM Golam Kibria, chairman of BPC, said: “The most important objectives of the corporation are to promote tourism in Bangladesh, build up a positive image of the country abroad, create a better tourism infrastructure, and provide services to the tourists.
BPC also aims to create more employment opportunities in different sectors of this industry, he added.