Hospitality industry insiders demanded reduction in value added tax (VAT) to help local hotels, resorts and restaurants tackle the fallout from the pandemic.
Comparing the local tariff structure with neighbouring nations, they said tourism in Bangladesh costs higher thanks to the VAT and taxes ranging 15% to 25%.
Newly built hotels in India enjoy zero customs duty until the revenues cover the investment, Md Noor Ali, managing director of Unique Hotels & Resorts, said at an event in Dhaka Wednesday.
"We are not able to compete with neighbouring countries due to the uneven tariff structure," he told the program organized by the Bangladesh International Hotel Association.
Khaled Ur Rahman, managing director of Golden Tulip Hotels, said VAT on restaurants was lowered to 5% from 15% during the pandemic. The tariff has been reverted though we are yet to shake off the losses.
At the program, the association handed over the "South Asian Travel Awards" to State Minister for Civil Aviation and Tourism Mahbub Ali.
Bangladesh won the award this year in the "Emerging Destination Award Visitors' Choice" category.
Hotel owners said the health directorate still owes them Tk22 crore in bills as they provided doctors and other on-duty medical personnel with accommodations during the pandemic.
They asked the minister to take measures in clearing the dues immediately.
They also pointed out plummeting foreign tourists due to spiralling airfare and complicated visa processing.
At the program, Noor Ali also said that high VAT was imposed on liquor unnecessarily.
Khaled Ur Rahman said when foreign guests visit Bangladesh, they complain about the non-availability of liquor.
Keeping this in mind, arrangements should be made to supply liquor at an affordable price at least for foreigners, he also said.
State Minister Mahbub Ali said: "The revenue board can take steps to reduce the VAT tax levied on hotels and liquor. We will push them for our demands time and again."
