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The government has proposed to increase the value added tax (VAT) on amusement parks and theme parks from 7.5 per cent to 15 per cent.
The VAT on the service provided by tour operators and tour guides has also gone up in the budget for fiscal year 2024-25, reports bdnews24.com.
This will push up the cost of tourism.
Finance Minister Abul Hassan Mahmood Ali proposed the increases in the budget he presented to parliament on Thursday.
“This decision will cause a problem in the tourism sector. It’ll bring a negative impact on tourists,” said Md Yunus, director of the Media and Publication Department of the Tour Operators Association of Bangladesh (TOAB).
“When the government withdraws VAT rebate it will increase the cost for tourists. Obviously, they would trim down their budget for tourism.”
The minister also targeted a modest increase in the growth rate to 6.75 per cent in the Tk 7.97 trillion budget presented for the 2024-25 fiscal year.