Tourism industry stakeholders convened today to advocate for the removal of a proposed 15 percent Value Added Tax (VAT) on tour operator services in the upcoming fiscal year 2024-25 budget, citing concerns about its potential negative impact on sector growth.

At a roundtable organized by the Tour Operators Association of Bangladesh (TOAB), participants warned that imposing the VAT could raise the cost of tour packages, potentially diverting domestic tourists to neighboring countries and discouraging foreign tourists from choosing Bangladesh as a destination.

TOAB President Md. Rafeuzzaman, who also leads the FBCCI Travel, Tour, and Hospitality Standing Committee, expressed particular concern that the VAT could stall significant investments in the tourism sector, thereby affecting the broader economy.