Foreign airlines’ profit repatriation process eased
Skip to main content
  • Home
  • Economy
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Splash
  • Features
  • Videos
  • Long Read
  • Games
  • Epaper
  • More
    • COVID-19
    • Bangladesh
    • Infograph
    • Interviews
    • Offbeat
    • Thoughts
    • Podcast
    • Quiz
    • Tech
    • Subscribe
    • Archive
    • Trial By Trivia
    • Magazine
    • Supplement
  • বাংলা
The Business Standard
WEDNESDAY, MAY 18, 2022
WEDNESDAY, MAY 18, 2022
  • Home
  • Economy
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Splash
  • Features
  • Videos
  • Long Read
  • Games
  • Epaper
  • More
    • COVID-19
    • Bangladesh
    • Infograph
    • Interviews
    • Offbeat
    • Thoughts
    • Podcast
    • Quiz
    • Tech
    • Subscribe
    • Archive
    • Trial By Trivia
    • Magazine
    • Supplement
  • বাংলা
Foreign airlines’ profit repatriation process eased

Aviation

TBS Report
03 September, 2020, 10:55 pm
Last modified: 03 September, 2020, 11:04 pm

Related News

  • Stowaway survives in nose wheel of freight flight from Africa: Dutch police
  • Business travel has a pulse, and it’s growing stronger
  • Airlines are going to need big data to recover from Covid
  • Airlines place their bets, looking past pandemic to renew fleets
  • Ukraine allows foreign forces to join planned 2022 military drills

Foreign airlines’ profit repatriation process eased

Foreign airlines operating in the country would no longer require to submit documents of every ticket of outbound passengers for getting approval to remit their earnings

TBS Report
03 September, 2020, 10:55 pm
Last modified: 03 September, 2020, 11:04 pm
File Photo: Turkish Airlines aircrafts are parked at the Ataturk International airport in Istanbul, Turkey, December 3, 2015. Reuters/Murad Sezer/File Photo
File Photo: Turkish Airlines aircrafts are parked at the Ataturk International airport in Istanbul, Turkey, December 3, 2015. Reuters/Murad Sezer/File Photo

From now, foreign airlines would not be required to submit documents of every ticket of outbound passengers for getting approval from the Bangladesh Bank to repatriate their profit.

The Bangladesh Bank issued a circular in this regard on Thursday, simplifying the procedure of remitting earnings of foreign airlines operating in the country. 

According to the circular, submission of the statement of immigration stamp will not be required for IATA (International Air Transport Association) member airlines. Instead, the airlines will submit IATA system generated documents such as airline billing summary.

The airlines would no longer require to submit copies of documents, except bank statements and documents, against the payment of different types of applicable taxes such as excise duty, embarkation fee, tax deduction at source, and so on, in support of the disbursements. In its place, they will retain the documents at their end for submission to banks and the inspection team of the Bangladesh Bank, as and when required, according to the circular.

To simplify the transaction modalities of foreign airlines, it has been decided that their surplus earnings may be calculated on the basis of passage and freight collections, said the circular.

Accordingly, banks will allow remittance on account of surplus earnings against passage and freight based on actual realisation provided that all collections are supported by bank statements, minimum provision at 10% on the collections is maintained for refund of unavailed journeys and necessary adjustments are made for all disbursements including accrued expenses, refunds, and income tax paid. 

Remittance is, however, to be allowed out of the fund available, without borrowed one, in the designated bank account, said the circular with immediate effect. 

Foreign airlines have long been demanding to omit the provision of submitting each sales ticket for repatriating their earnings, as maintaining each ticket to show to the authorities was a big hassle and time consuming for them, according to industry insiders. 

In a recent interview with The Business Standard, George Robertson, general manager of Singapore Airlines, Bangladesh pointed out that the process of taking funds outside the country is very complex and lengthy.

"Airlines are required to submit documents for every ticket to the bank – for repatriation of funds – which is very time-consuming. For foreign airlines, this is a complex operation. As a result, it takes several months to take permission to remit funds to the head office," the general manager of Singapore Airlines stated.

"This is one of the major challenges of working in Bangladesh. India and some other countries have moved more progressively in regulatory changes allowing foreign airlines to operate smoothly," he said. 

Repatriation of funds from other countries is simpler for international airlines. 

He said in India, foreign airlines do not need to supply documentation for every ticket. Airline companies just pay the relevant tax on all sales.

However, he welcomed the development as an initial step in improving confidence in the operating environment for international airlines in Bangladesh. 

Earlier, foreign airlines had to collect so many documents including tickets for each passenger and copies of passports, which made them reluctant to operate in Bangladesh, said A Sattar Siddiqui, marketing manager at the Dhaka office of Turkish Airlines.

He said the ease of documentation submission procedure will make it comfortable for foreign airlines to do business in the country. 

Economy / Top News

Foreign / Airlines

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • Infographic: TBS
    Bakery business: Out of the frying pan into the fire
  • Photo: Collected
    China, US are racing to make billions from mining the moon's minerals
  • Onion prices need to be fixed to protect both consumers, farmers: Tipu Munshi 
    Onion prices need to be fixed to protect both consumers, farmers: Tipu Munshi 

MOST VIEWED

  • Representational Image. Photo: Collected
    5 Biman officials suspended over collision between 2 planes at Dhaka airport hanger
  • Photo: Collected
    Daily Oman Air flights from Chattogram
  • SpiceJet to resume Ctg-Kolkata flights on Thursday
    SpiceJet to resume Ctg-Kolkata flights on Thursday
  • Grounded Boeing aircraft of Biman now ready to fly
    Grounded Boeing aircraft of Biman now ready to fly
  • Nepal wants air connectivity with northern Bangladesh
    Nepal wants air connectivity with northern Bangladesh
  • File photo of Biman Aircraft/Royed Bin Masud
    2 Biman aircrafts grounded after collision in Dhaka airport hangar

Related News

  • Stowaway survives in nose wheel of freight flight from Africa: Dutch police
  • Business travel has a pulse, and it’s growing stronger
  • Airlines are going to need big data to recover from Covid
  • Airlines place their bets, looking past pandemic to renew fleets
  • Ukraine allows foreign forces to join planned 2022 military drills

Features

‘The geopolitical landscape is undergoing profound change, Dhaka needs to craft proactive strategies’

‘The geopolitical landscape is undergoing profound change, Dhaka needs to craft proactive strategies’

5h | Interviews
Graphics: TBS

Facebook and Bangladeshi politicians: A new tide in mass political communication?

6h | Panorama
Despite Bangladesh having about 24,000 km of waterways, only a few hundred kilometres are covered by commercial launch services. Photo: Saad Abdullah

Utilising waterways: When common home-goers show the way

1d | Panorama
Illustration: TBS

How Putin revived Nato

1d | Panorama

More Videos from TBS

How Putin revived Nato

How Putin revived Nato

50m | Videos
Paddle steamers in Bangladesh

Paddle steamers in Bangladesh

6h | Videos
Genome sequencing: best ways to diagnose pediatrics

Genome sequencing: best ways to diagnose pediatrics

6h | Videos
Reasons behind the sudden fall in stock market

Reasons behind the sudden fall in stock market

6h | Videos

Most Read

1
Representative Photo: Pixabay.
Bangladesh

Microplastics found in 5 local sugar brands

2
Mushfiq Mobarak. Photo: Noor-A-Alam
Panorama

Meet the Yale professor who anchors his research in Bangladesh and scales up interventions globally

3
The story of Bangladesh becoming a major bicycle exporter
Industry

The story of Bangladesh becoming a major bicycle exporter

4
How Bangladesh can achieve edible oil self-sufficiency with local alternatives
Bazaar

How Bangladesh can achieve edible oil self-sufficiency with local alternatives

5
Govt tightens belt to relieve reserve
Economy

Govt tightens belt to relieve reserve

6
Impact of falling taka against US dollar
Banking

Taka losing more value as global currency market volatility persists

The Business Standard
Top
  • Home
  • Entertainment
  • Sports
  • About Us
  • Bangladesh
  • International
  • Privacy Policy
  • Comment Policy
  • Contact Us
  • Economy
  • Sitemap
  • RSS

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net

Copyright © 2022 THE BUSINESS STANDARD All rights reserved. Technical Partner: RSI Lab