Tour operators and people involved in tourism sector on Tuesday demanded that the National Board of Revenue should provide some tax and duty benefits in the next budget including duty-free import of tourist vehicles to help the sector to flourish in the country.
At a pre-budget discussion with the NBR, they said that the sector was not getting enough facilities from the government despite having huge potential to grow and contribute to national economy.
Leaders of the tourism sector also sought exemption from paying advance income tax on remittances they got from foreign nationals for providing services.
NBR chairman Ghulam Hussain, however, advised the tour operators to develop sufficient amenities for the tourists to attract more international tourists as well as local people.
The government will also examine which benefits can be given in future in a bid to flourish the tourism sector in the country, he said.
In its written proposal, Tour Operators Association of Bangladesh sought various fiscal benefits including easy-term bank loans, tax, import duty and value-added tax waiver saying that the government declared the sector as an industry but they were not getting any benefits.
TOAB demanded for providing duty-free tourist vehicles including bus and ship import facility for the remittance earnings tourism operators.
It also sought carnet facility to the TOAB members for arranging cross border tourism services.
‘There are no sufficient standard vehicles to carry tourists in the country while tour operators cannot import quality cars due to high cost,’ TOAB director Taufiq Rahman said.
The government can provide duty-free vehicles for tourism purposes only in favour of foreign currency earning tour operators, he said.
He said that same facility could be provided for import of vessels to encourage river tourism.
TOAB said that cross border tourism by carnet vehicle is very popular around the world but the NBR scrapped the facility last year to prevent duty evasion by some non-resident Bangladeshis who brought carnet cars and sold those in local market.
The NBR can reintroduce the carnet facility, a system under which a tourist can bring his personal vehicle to a country without paying duty on condition that she/he will bring back the vehicle during his or her departure to the TOAB members who have ability to operate cross border tourism, TOAB said.
The association also sought exemption from paying advance income tax at the rate of 10 per cent on remittance they got from foreign nationals for providing services, saying that more than 90 per cent of that remittance is spent in arranging accommodation, food, transportation and sightseeing for the tourists.
Operators get only less than 10 per cent as profit but the NBR deduct 10 per cent AIT on total receipt, it said.
Latiful Kader of Tourism Resorts Industries Association of Bangladesh demanded exemption of AIT and VAT for resorts situated in rural areas.
Bangladesh International Hotel Association president HM Hakim Ali sought reduction of VAT on services of international standard hotels to attract tourists in the country.
Bangladesh Restaurant Owners’ Association secretary general Rezaul Karim Sarkar demanded for reducing VAT on air-conditioned restaurant which serve local food to 3 per cent from the existing 6 per cent.
NBR members Syed Aminul Karim and Jahangir Hossain, among others, spoke at the meeting.
-With New Age input
