Pay more for tours and amusement budget imposes VAT, ends relief

A 15 percent VAT - twice as much the current rate- on the service of amusement parks and theme parks has been proposed

The government has proposed to increase the value added tax (VAT) on tour operators in the budget of 2024-25 fiscal year, in a move that operators say will drive the cost of domestic tourism.

Finance Minister Abul Hassan Mahmood Ali imposed 15 percent VAT on the service of ‘Amusement Park and Theme Park’ from the existing rate of 7.5 percent in parliament on Thursday.

He also withdrew the excise duty exemption on the service of tour operators.

The tour operators are not impressed.

”This decision will cause a hindrance in the tourism sector. It’ll bring a negative impact on tourists,” said Md Yunus, spokesperson for the Tour Operators Association of Bangladesh, TOAB.

“When the government withdraws VAT rebate it will increase the cost for tourists. Obviously they would cut down their budget for tourism.”