The recent hike in excise duty on domestic and international air tickets by the National Board of Revenue (NBR) is causing significant concern among Bangladesh’s local airlines. Industry officials warn that this move will negatively impact the aviation market, particularly domestic passenger growth. The increased duties—rising from Tk 500 to Tk 700 for domestic flights, and up to Tk 4,000 for flights to Europe and America—are expected to make air travel less affordable, reducing demand. Novoair’s MD, Mofizur Rahman, highlights that such increases often lead to a 25% drop in passenger numbers. US-Bangla Airlines’ GM, Kamrul Islam, suggests that sudden duty hikes could hurt GDP growth, especially in the aviation tourism sector. Air Astra CEO, Imran Asif, criticizes the government’s view of the hikes as marginal. Industry leaders call for government subsidies or reduced surcharges to mitigate the negative impact on the sector.
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