Entrepreneurs seek tax, VAT exemption to foster tourism industry growth

The FBCCI president pledges to draw up a specific plan to attain sustainability in the sector

The tourism industry entrepreneurs have sought a reduction of the existing 10 percent advance tax on tour operators and the VAT imposed on residential hotels for the development and expansion of the sector.

The traders drew the government’s attention to facilitate the visa process to attract foreign tourists, alongside providing special offers on airfares in a meeting of the Federation of Bangladesh Chambers of Commerce and Industry committee on tour, travel and hospitality industry in Dhaka on Thursday, according to a statement from the FBCCI.

The traders also sought duty exemptions for the import of machinery and vehicles used in the sector, urging authorities to stop their harassment in the name of government requisition.

“Tourism is a very potential sector. The contribution of the sector to the country’s GDP is only 3.3 percent. The federation aims to raise it to at least 10 percent. A specific action plan should be taken to ensure sustainability in the sector,” FBCCI President Mahbubul Alam said.

He asked for the development of new hospitality products such as community tourism, eco-tourism, and religious tourism at the time, calling for proposals from traders and entrepreneurs to address the problems plaguing the sector.

The federation will develop tourism-friendly policies by analysing the stakeholders’ proposals, he added.