15% VAT slapped on airport dev, safety fees
The newly introduced “passenger safety” and “airport development” fees will be collected from all outbound passengers from August 1
From Saturday (August 1), the Civil Aviation of Bangladesh (CAAB) will realize 15 percent value-added tax (VAT) on previously declared two fees from both domestic and international passengers.
In a letter to the CAAB Wednesday, the National Board of Revenue (NBR) asked the aviation authority to take necessary measures in this regard.
The civil aviation earlier introduced two new fees -- "Passenger Safety Fee" and "Airport Development Fee" -- for all outbound passengers for using airports in Bangladesh from August 1 this year.
On July 22, the CAAB issued a circular in this regard where all outbound passengers were divided into three categories -- domestic, passengers to Saarc countries, and passengers to other countries.
The domestic passengers have been levied with an extra of Tk170 -- Tk70 as Passenger Safety Fee and Tk100 as Airport Development Fee.
Meanwhile, air passengers to Saarc countries have been charged $5 as Airport Development fee and $6 as Passenger Safety Fee. The CAAB said both fees would be $10 for passengers from other countries.
The 15 percent VAT will be supplemented on these two additional fees.
For example, passengers to Saarc countries from August 1 will have to pay Tk934 extra [1 dollar equals to Tk84.95] for airport development and safety. The 15 percent VAT will be applied on this amount, which will be Tk140.
Thus, the total additional charge a passenger to any Saarc country is required to pay now will be Tk1,074.61. This amount for passengers to other countries including the Middle East will be Tk1,953.85.
It can be noted that many countries charge air passengers with the two fees, and Bangladesh is set to follow their lead. The CAAB said the fees would help to improve services for outbound passengers and modernise the local airports.
The civil aviation talked to several ministries and came up with the announcement after getting green signal from them. CAAB Director (Finance) Mohammad Moazzem Hossain said they had already sent the circular to local and international airliners operating in the country.
