VAT on amusement parks may increase
The government today proposed imposing 15 percent value-added tax on amusement parks and theme park services.
At present, they pay 7.5 percent value-added tax on these services.
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In addition, it has been proposed to withdraw the existing VAT exemption facility on tour operator services.
About Tk 12,000 crore has been invested in amusement parks in Bangladesh over the past two decades. About 6 lakh people have been employed directly by them, according to the Bangladesh Association of Amusement Parks and Attractions (BAAPA).
Bangladesh's first amusement park opened in 1979 when the government set up Shishu Park in the capital's Shahbag. Shishu Mela Park in Shyamoli opened six years later.
Set up in 1990, Gulshan Wonderland was the country's first privately-run park, which was demolished two decades later.
Currently, there are more than 300 amusement and theme parks in Bangladesh. Of them, over 100 parks are members of the BAAPA. The annual turnover of the sector is Tk 5,000 crore, according to the trade body.
Tour operator services, which include hotels and resorts as well as tour guides, may also no longer enjoy a 15 percent VAT exemption.
Imranul Alam, a tour operator, said VAT has to be paid while renting vehicles or eating at restaurants.
Additionally, the profit margin has also decreased significantly given the current economic situation.
So, if the government imposes VAT on tour operator services now, the business will be negatively affected. Investment will be discouraged, he said.
No one who works in tourism at the root level is on the list of policymakers, which is why entrepreneurs have to face such a situation.
If this continues, the tourism sector will not be able to go very far, he added.
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