Travel Tax: Which Bangladesh Banks Accept It?

The National Board of Revenue (NBR) in Bangladesh collects travel tax from people travelling abroad, including migrant workers, under the Travel Tax Act 2003. The tax is either collected at the time of ticket issue or in cash at the airport by the airline. The tax amount varies depending on the region of travel and mode of transportation. For instance, as of June 2023, the tax for travelling to Saarc countries is Tk2,000, while it is Tk4,000 for Middle Eastern countries and Tk6,000 for the rest of the world. In addition, a travel tax of Tk200 was introduced in 2023-24 for domestic air travellers. The NBR's efforts to reduce unnecessary foreign travel and create new revenue streams have resulted in a significant increase in travel tax, impacting the overall expenses of individuals and businesses.

The tax for travelling to Saarc countries will go up by 67% to Tk2,000

Travelling to Saarc Countries? Here's What You Need to Know About the Recent Tax Hike

As per the National Budget for the Fiscal Year 2023-24, the tax for travelling to Saarc countries from Bangladesh has increased by 67% to Tk2,000. This change comes as a part of the National Board of Revenue's (NBR) efforts to curb unnecessary foreign travel and create new revenue streams. The NBR collects travel tax from outbound travellers, including migrant workers, under the Travel Tax Act 2003.

The tax for travelling to Saarc countries increased by 67%, from Tk500-1,200 to Tk2,000. This change will undoubtedly impact the overall expenses of individuals or businesses planning trips to Saarc countries.

The tax hike is not limited to Saarc countries. The government has increased the travel tax by up to 67% for all international destinations. For Middle Eastern countries, the tax has gone up by 33% to Tk4,000, and for the rest of the world, it has increased by 50% to Tk6,000.

Domestic Travel Tax

For the first time, domestic air travellers will also face a travel tax of Tk200 for flights within Bangladesh.

Land and Sea Routes

Travellers using land and sea routes to go abroad will have to pay a tax of Tk1,000.

Who Is Exempt from the Tax?

It's important to note that certain individuals are exempt from paying the travel tax. These include infants under two years of age, passengers travelling by stretcher, flight crew members, diplomats and their families working in Bangladesh, United Nations officials and their families working in the country, those travelling for pilgrimage or Umrah, and a few other specific categories.

Where Can I Pay the Tax?

If you're looking for specific bank branches that accept travel tax in Bangladesh, you can refer to forums or the official website of the respective bank. For instance, for Sonali Bank, travellers have mentioned the Shapla chootor branch and the Dilkusha branch as options for paying the travel tax.

The recent tax hike for travelling to Saarc countries and other international destinations is a significant change that will impact travel plans and expenses. It remains to be seen how this will affect the aviation industry and overall travel behaviour in Bangladesh.

The tax for travelling to Middle Eastern countries will increase by 33% to Tk 4,000

The Bangladesh government has increased the travel tax by up to 67%, which will impact those planning trips, especially to the Middle East. The tax for travelling to Middle Eastern countries will increase by 33% to Tk 4,000. This is part of the National Board of Revenue's (NBR) efforts to reduce unnecessary foreign travel and create new revenue streams. The NBR collects travel tax from outbound travellers, including migrant workers, under the Travel Tax Act 2003. The previous tax amount for Middle Eastern countries was Tk 3,000.

The new tax rates vary depending on the destination and mode of transportation. For travel within South Asian Association for Regional Cooperation (SAARC) countries, the tax has been increased by 67% to Tk 2,000. For travel to the rest of the world, the tax has gone up by 50% to Tk 6,000. Additionally, domestic air travellers will now have to pay a travel tax of Tk 200 for the first time. The tax for land and sea routes remains the same at Tk 1,000.

The tax increases are expected to affect overall expenses for individuals and businesses undertaking trips. While the NBR aims to reduce unnecessary travel with this move, economists have opined that the government should focus on widening the tax net instead of increasing tax pressure, especially during times of high inflation.

For those planning travel, it is important to be aware of the applicable taxes and any exemptions. In Bangladesh, certain travellers are exempted from paying the travel tax, including infants under two years of age, passengers travelling by stretcher, flight crew members, diplomats and their families, and United Nations officials and their families. Additionally, travel for pilgrimage and Umrah is also exempted from the tax. It is recommended to check the latest guidelines and regulations before planning international travel from Bangladesh.

The tax for travelling to the rest of the countries will go up by 50% to Tk6,000

The tax for travelling outside of South Asian Association for Regional Cooperation (SAARC) countries and the Middle East will increase by 50% to Tk6,000. This means that the tax for travel to North and South America, Europe, Africa, Australia, New Zealand, and the Far East will now be Tk6,000, up from Tk4,000. This change was implemented as part of the National Budget for the Fiscal Year 2023-24, which was placed before the Parliament of Bangladesh on Thursday, June 1, 2023.

The tax is collected either at the time of ticket issuance or in cash at the airport by the airlines at check-in for air travel. This tax is in addition to other travel taxes being paid. The tax amounts are classified into nine regions of travel, with different rates for each. Previously, the tax for travel to the aforementioned regions was Tk4,000. Now, the tax for travel to SAARC countries will be Tk2,000, and the tax for travel to Middle Eastern countries will be Tk4,000. The tax for travel by road is Tk500, and the tax for travel to any other country is Tk6,000.

The increase in travel tax is part of the National Board of Revenue's (NBR) multifaceted efforts to reduce unnecessary foreign travel and create new revenue streams. The NBR collects travel tax from people travelling abroad, including migrant workers, under the Travel Tax Act 2003. In the Fiscal Year 2022, the tax amounted to Tk871 crore. While this move is intended to reduce unnecessary foreign travel, create austerity habits, and generate new revenue, it will also directly impact the overall expenses of individuals or businesses when planning and undertaking trips.

The rate is Tk1,000 if travellers use land and sea routes to go abroad

The Bangladesh government has increased the travel tax for its citizens, with the new rates coming into effect in the 2023-24 fiscal year. This move is intended to reduce unnecessary foreign travel, encourage austerity, and generate new revenue streams to ease the strain on foreign exchange reserves.

The travel tax rate for Bangladeshi citizens using land and sea routes to travel abroad is Tk1,000. This is a significant increase from the previous rate of Tk500 for travel by road. This new rate is part of the government's efforts to boost revenue and manage economic uncertainties, including the impact of the war in Ukraine on foreign exchange reserves.

The tax rate varies depending on the mode of transportation and the destination country. For air travel, the tax rates are as follows: Tk6,000 per passenger for travel to North America, South America, Europe, Africa, Australia, New Zealand, China, Japan, Hong Kong, North Korea, Vietnam, Laos, Cambodia, and Taiwan; Tk2,000 for travel to SAARC countries; and Tk4,000 for travel to other countries, including the Middle East.

It is important to note that certain individuals are exempt from paying the travel tax, including infants under two years of age, passengers traveling by stretcher, flight crew members, diplomats and their families working in Bangladesh, and United Nations officials and their families working in the country. Additionally, passengers up to the age of 12 will only be liable for half of the applicable tax rates.

The tax for domestic air travel in Bangladesh

From 2023, domestic air travellers in Bangladesh will have to pay a travel tax of Tk200 when taking flights within the country. This is the first time that a travel tax has been imposed on domestic air travel in Bangladesh. The tax is payable either at the time of ticket issue or in cash at the airport when checking in.

The tax is part of the National Budget for the Fiscal Year 2023-24, which was placed before the Parliament on Thursday, June 1, 2023. The National Board of Revenue (NBR) included the tax as part of its efforts to reduce unnecessary foreign travel and create new revenue streams.

The introduction of the tax is expected to increase ticket prices for domestic air travel within Bangladesh.

In addition to the new domestic air travel tax, the NBR has also increased taxes for outbound travellers. The tax for travelling to South Asian Association for Regional Cooperation (SAARC) countries has gone up by 67% to Tk2,000, while taxes for travelling to Middle Eastern countries and other regions have also increased. The tax rate for travellers using land and sea routes to go abroad is Tk1,000.

Certain categories of individuals are exempt from paying the departure travel tax, including infants under two years of age, passengers travelling by stretcher, flight crew members, diplomats and their families working in Bangladesh, and United Nations officials and their families working in the country.

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