Staff correspondent:

The government is planning to collect travel tax directly from outbound passengers, replacing the existing system where airlines add the tax to ticket prices and later deposit it into the state treasury.

In many cases, however, airlines fail to submit the collected tax, prompting the National Board of Revenue (NBR) to consider a new mechanism.

Speaking at a pre-budget discussion at the NBR headquarters in the capital’s Agargaon on Thursday (April 17), NBR Chairman Md Abdur Rahman Khan said the proposed change will be addressed in the upcoming national budget for FY2025-26.

“Currently, airlines collect the travel tax on behalf of the government, but the funds often don’t reach the state treasury,” he said.

“Some airlines go bankrupt or exit the market without paying what they owe, depriving the government of crores in revenue.

“To avoid this, we want passengers to pay the tax directly. They will deposit the amount, receive a receipt (chalan), and present it before travel,” he added.

TRADE BODIES SEEK TAX RELIEF, POLICY SUPPORT

At the discussion, representatives from various trade associations put forward a range of proposals aimed at easing business operations.

The Aviation Operators Association of Bangladesh (AOAB) urged the government to exempt jet fuel from import duties and VAT and to reduce taxes on aircraft components.

The Solar Module Manufacturers Association of Bangladesh proposed a financial support package of Tk500 crore to boost local solar panel production.

The Bangladesh Sweets Manufacturers Association called for a reduction in VAT on sweets – from the current 10% to 3% – to support the domestic confectionery industry.

The Bangladesh Inland Waterways Passenger Carriers Association recommended a VAT exemption on air-conditioned cabins of passenger vessels to encourage water-based transport.

Meanwhile, the Bangladesh Manufacturers Association of Transformer and Switchgear requested a complete waiver of duties on 65% of raw materials used in the production of export-bound equipment.

In his closing remarks, the NBR chairman assured business leaders that the revenue board is committed to making regulatory processes more business-friendly.

“Our primary objective in this year’s budget is to facilitate trade, close loopholes, and reduce inequality,” Abdur Rahman said.