Waive int’l travel tax for travellers on local carriers | The Daily Star
12:00 AM, June 13, 2008 / LAST MODIFIED: 12:00 AM, June 13, 2008

Waive int’l travel tax for travellers on local carriers

Local airlines ask govt

Local airlines yesterday demanded duty waiver on import of aircraft, spares and ancillary items, reduction of duty and VAT on jet fuel and withdrawal of international travel tax for travelers on local carriers to boost local airline.
They made the plea in a meeting with Mahbub Jamil, special assistant to the chief adviser, at the youth and sports ministry.
High officials from all five local airliners--Biman Bangladesh Airlines Limited, GMG Airlines, Best Air, United Airways and Aviana Airways--were present at the meeting. Civil Aviation and Tourism secretary Syed Mohammad Zobaer was also present.
The local airlines informed the special assistant that the aviation industry in Bangladesh is passing through a crucial state due to astronomical price of jet fuel.
“Jet-fuel prices in Bangladesh are 10-25 percent higher compared to Malaysia, Thailand, and the Middle East. Bangladeshi airlines are competing with major airlines of these major regions. This puts all Bangladeshi airlines at a great cost disadvantage,” the coalition of air-service operators said in a letter to the special assistant.
In the letter the local airlines said that the only way the Bangladeshi airlines can survive is to be able to buy the jet fuel at an international price level, and that is possible by the government with a little reduction in VAT, taxes and the profit margins on the jet fuel.
As per official data, government cost for import of jet fuel is Tk 70-72 per litre. But the government increased the jet-fuel price from Tk 75 to Tk 95 per litre on June 3.
The import of aircraft, spares and ancillary items had been zero-rated till the 2006-07 fiscal year.
In the 2007-08 budget, the government imposed 10 percent import duty on these items. But in the next fiscal budget the Finance Adviser has proposed it down at 3 percent.

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