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Travel tax collection drops


Published : 21 Aug 2021 10:00 PM | Updated : 22 Aug 2021 12:24 AM

The adverse effect of ongoing pandemic caused a huge setback in travel tax collection in the country. In the last fiscal year 2020-21, only 32 percent of the target has been achieved.

According to government data, in the last fiscal, it was estimated to collect Tk 1050 crore as travel tax, but it collected only Tk 336 crore. 

According to the National Board of Revenue’s (NBR) final revenue collection statistics, this information has been revealed. 

Industry insiders said, strict restrictions to halt the infection of coronavirus have had a negative impact on the country’s tourism industry.

As the tourist attractions including both local and international flights operation were out of operation, and many people purchase capacity reduced greatly, hence NBR’s tax collection stumbled.  

The lockdown started on the first day of the financial year to prevent corona. Although it was relaxed for a week for Eid from August 15, the government tightened the restrictions from August 23 again. During this time all kinds of factories except food, medicine and leather sector were also closed.

Talking to the concerned people in this sector, it has been learned that the number of international passengers has decreased by 75 percent as compared to the normal time. 

Many countries have also imposed travel bans because of the Covid-19. Sometimes for several months, Middle Eastern airlines would only bring in passengers from abroad, leaving from Bangladesh empty. Due to these reasons, the travel tax has reduced significantly. 

Travelers have to pay tax while traveling by land and air. Travel tax through land port for an individual is Tk 500 and Tk 800 for SAARC countries by air. While travelling to other countries a person has to pay Tk 1,800 as travel tax. This tax is deducted with the air ticket. In the case of passengers between the ages of 5 and 12, the travel tax is half. Besides, the travel tax per passenger through water ways is Tk 800.