The construction of luxury hotels will enjoy exemption from all taxes except for 5% customs duty on the import of building materials and equipment.
Following appeals for such facility from investors, the government made the positive response considering potentiality of Bangladesh’s tourism sector, said official sources.
The National Board of Revenue has already issued a statutory regulatory order in this regard this week.
It said the posh hotels of international standards will have to pay only 5% customs duty and no other taxes including value added tax (Vat) and supplementary duty for their constructions.
Officials said the exemption will be given only to the franchise of international chain hotels and local hotels of international standards certified by the tourism ministry.
Facility will be available only after the companies concerned have quality certificates from the ministry.
The ministry will assess the standards before certifying, said the officials.
To get the tax benefit, the entrepreneurs will have to show agreement documents signed with international chain luxury hotel companies.
For local luxury hotels of international standards, they will have to submit Vat payment certificates and approvals from Board of Investment.
Tax benefit will remain effective only during construction works and until the launch of hotels commercially.
The hotel entrepreneurs will enjoy tax exemption facility in the import of materials like exterior-interior decorations, kitchen and cooking equipment, building security equipment, fire-safety tools, electricity substation machineries, lighting and health club materials for etc.
In next 2-3 years, 10 new five-star hotels in Dhaka and Chittagong will be built in Bangladesh to meet the increasing demand.
A number of international hotel chains and local conglomerates will jointly establish the hotels.
During the recent years, the visits of foreign businessmen and hosting of international sporting events like multi-national cricket tournaments have increased.
Taking these factors in consideration, the investors want to expand luxury hotel business in the country.
