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The Financial Express

NBR imposes VAT on airport development fee

| Updated: July 31, 2020 09:58:36


Passengers are checked with thermal scanner at the Hazrat Shahjalal International Airport as a preventive measure against coronavirus in Dhaka on 11 March, 2020 — Reuters/Files Passengers are checked with thermal scanner at the Hazrat Shahjalal International Airport as a preventive measure against coronavirus in Dhaka on 11 March, 2020 — Reuters/Files

Outgoing airline passengers will have to pay 15 per cent VAT on the newly imposed airport development and passenger security fees, effective from August 01.

The Civil Aviation Authority of Bangladesh (CAAB) recently imposed the additional fee on all airline passengers on both domestic and international routes.

The VAT wing of the National Board of Revenue (NBR) issued an order on Tuesday, saying the 15 per cent VAT would be imposed on the airport development and passengers' security introduced by the CAAB on July 22.

This is for the first time that the CAAB imposed such fees to improve the passenger services at the airport, officials said.

The civil aviation authority has already sent the order regarding the fees to the local and international airlines.

In its order, the CAAB said passengers will have to pay Tk 100 in development fee and Tk 70 in passenger security fee for every travel on the domestic routes.

For passengers flying to SAARC country, the development fee has been set at US$5.0 and passenger security fee at $6.0, while travellers to other countries will have to pay $10 in development fee and another $10 in security fee.

As per the NBR order, the civil aviation authority will collect and deposit the 15 per cent VAT to the public exchequer.

The NBR sent the order to all the field-level offices of the VAT zones across the country to monitor collection of VAT from these new sources.

doulot_akter@yahoo.com

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