Tourism industry leaders on Thursday sought cut in VAT on resorts, restaurants and liquors - both local and foreign — to help the sector grow further and recover from the pandemic-induced loss.
They also urged the revenue authority to allow hotel and resort owners to import different types of tourism-friendly vehicles, having specific colour and number plate, to ease movement of tourists from home and abroad.
The proposals were placed at a pre-budget meeting of different associations with the National Board of Revenue (NBR) at its conference room in the city's Segunbagicha area.
Presided over by NBR Chairman Abu Hena Md Rahmatul Muneem, the programme was addressed by NBR members Md Masud Sadiq, Zakia Sultana and Md Shamsuddin Ahmed.
Leaders of different associations - representing shop and restaurant owners, tourism industry, and courier service, etc - placed their budget proposals for next fiscal year (FY), 2022-2023.
Speaking at the programme, Tourism Resort Industries Association of Bangladesh (TRIAB) President Khabir Uddin Ahmed said tourism sector has faced a major blow due to low number of tourists during the coronavirus pandemic.
Mentioning that the existing VAT and tax rates on hotel and resorts have become a burden for the industry, he proposed to lower the current 15 per cent VAT on resorts to 7.5 per cent.
Besides, he proposed to cut the VAT on air-conditioned restaurants from 10 per cent to 6.0 per cent, and non-AC restaurants from 7.50 per cent to 3.5 per cent.
Terming the current VAT rate on liquors excessive, Mr Ahmed urged the revenue authority to lessen VAT on both local and foreign liquors for future development of tourism industry.
Meanwhile, Tour Operators' Association of Bangladesh (TOAB) President Md Rafeuzzaman proposed the NBR to provide duty-free or low-duty vehicle import facility for tourism industry.
He said though there has been a downtrend due to the pandemic, local tourist destinations get over 20 million domestic visitors per year, and the number of foreign tourists is gradually increasing every year.
Tour operators can import tour buses at low cost to facilitate tourists by easing their commuting hassles, he opined.
Tourism Developers Association of Bangladesh (TDAB) Chairman Syed Habib Ali said the NBR should allow tour operators and hotel-resort owners, having at least five years of experience and good income tax record, to import vehicles at low duty.
These vehicles can have specific colour and number plate, he also said.
Bangladesh Restaurant Owners Association (BROA) proposed to cut VAT from 15 per cent to 3.0 per cent for lower-tier restaurants and street food vendors that usually serve low-income working-class people.
Referring that at least 40-50 per cent restaurants in the country do not pay VAT despite having interest to pay it, BROA Secretary General Imran Hasan said before making VAT registration mandatory for all, Electronic Fiscal Device (EFD) machines should be installed in all restaurants.
Bangladesh Dokan Malik Samity (BDMS) President Helal Uddin said the government was supposed to give EFDs for free to all shops in the country, but the initiative did not come to light yet.
He said prior to installing EFDs in majority of the shops, the government can take VAT at source at 5.0 per cent rate, which would generate extra Tk 200 billion per fiscal.
Many shop owners do not pay taxes due to complex procedure. The tax return form should be of one page, so that small shop owners also get encouraged to pay taxes, he added.
Responding to the comment over EFD machines, the NBR chairman asked BDMS to submit a list shops that want to install EFDs.
"We've ordered 100,000 units of EFDs; but installed only around 3,500 units so far due to unwillingness of shop owners."
Mentioning over 67,000 tax returns were submitted online, he added that the NBR is digitising the taxation system to reduce hassle of businesses as well as individual taxpayers.
ahb_mcj2009@yahoo.com