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Govt considers imposing travel tax on domestic air passengers

FE REPORT | May 30, 2023 00:00:00


The government may impose a travel tax on domestic air passengers for the first time, starting from the upcoming fiscal year (FY2023-24), following the surge in air travels.

Passengers may have to pay Tk 200 per flight on domestic routes starting from July 1, 2023.

The finance minister is likely to propose the new rates of the travel tax on June 1, 2023, while presenting the budget for FY2023-24 in the national parliament on Thursday next.

Other travel taxes for the South Asian Association for Regional Cooperation (SAARC) countries may also increase to Tk 2,000, while the tax for other countries would be Tk 4,000.

Currently, travel taxes for SAARC countries range from Tk 500 to Tk 1,200, while for other countries, it is Tk 3,000.

For travel to North America, South America, Europe, Africa, Australia, New Zealand, China, Japan, Hong Kong, North Korea, Vietnam, Laos, Cambodia and Taiwan, the tax would be raised to Tk 6,000 from the current Tk 4,000.

The travel tax for land and water routes to other countries might be increased to Tk 1,000.

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