July 8, 2025

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TOAB demands continuation of existing 15% VAT exemption

The budget announced on June 6 proposed to withdraw the existing tax exemption on tour operator services. In this context, on Tuesday, June 11, 2024, in a press conference organized at the Nasrul Hamid Auditorium of Reporters Unity in the capital, the President of Tour Operators Association of Bangladesh (TOAB), the top organization of Bangladesh’s tourism industry, and Chairman of the FBBCI Travel, Tour and Hospitality Standing Committee, Md. Rafeuzzaman, said that tour operators should work for the sake of developing tourism industry. In the proposed budget, he demanded that the proposal to impose Musak on services should be scrapped.

Because tour operators collect tourism elements from various sectors and create packages that create convenience and comfortable travel for tourists. For example, while renting a hotel room, buying a transport ticket, paying a restaurant bill, paying tickets for various tourist attractions and amusement parks, Musak is given. It even applies to other tourism services. Tour operators provide services to tourists by combining all the mentioned tourism elements. Now, if tourism elements are added to the combined package, the package price and travel cost will increase significantly. As a result, the entire tourism industry, especially inbound and inbound tourism, will be severely affected.

As the tourism industry is a vast and multi-sector one, the withdrawal of existing facilities may hinder the development of a thriving tourism industry in Bangladesh. It is mentioned here that the tourism industry of Bangladesh was created by the father of the nation, Bangabandhu Sheikh Mujibur Rahman. The door of tourism which has been opened by the efficient management of his privileged daughter Hon’ble Prime Minister Sheikh Hasina will be greatly hindered. Not only this, the tourism industry can both earn and save hard-earned foreign exchange through tour operators. Soon after the budget announcement, a delegation led by President TOAB met with FBCCI President Mahbubul Alam to discuss the withdrawal of Musak. TOAB president Md. Rafeuzzaman drew the attention of the society’s Darpan journalists in this matter so that this claim of TOAB comes to the attention of the right quarters.

Former Chief Executive Officer of Bangladesh Tourism Board (Additional Secretary) Jabed Ahmed, Vice-President of TOAB Md. Anwar Hossain, recently outgoing President of TOAB and Governing Body Member of Bangladesh Tourism Board Shiblul Azam Qureshi, Director (Media and Public Relations) of TOAB Mohammad Yunus etc. spoke. The press conference was attended by TOAB board of directors and advisors, honorable members, TOAB secretary and journalists from print and electronic media.

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