Tk 5,695cr allocation for civil aviation, tourism in FY 2024-25 proposed A total of Tk 5,695 crore has been allocated for Civil Aviation and Tourism Ministry in the proposed budget for 2024-25 fiscal year (FY) to support growth of local aviation operators as well as increasing tourism contribution to the national economy. The allocation in the proposed budget is Tk 655 crore less than the revised budget of 2023-24 fiscal that was Tk 6,350. The proposed budget of the fiscal 2023-24 for the Civil Aviation and Tourism ministry was Tk 6,597 crore.
Finance Minister Abul Hassan Mahmood Ali made the announcement while placing the budget for FY 2024-25 in the Jatiya Sangsad (JS) in the capital on Thursday. The minister proposed to withdraw VAT on aircraft engine and spare parts of propellers at the import stage to support the growth of local aviation companies and to tap the future potential of the industry. "In the current reality, the domestic airlines are gradually lagging behind in the competition with the foreign airlines due to various reasons," he said while placing his rational for exempting the VAT.
Over the past 15 years, the finance minister said, both passenger and cargo air transport with the rest of the world has increased manifold with the substantial growth of the country's economy. In tandem, he said, domestic air travel has also increased with the change in travel options by the countrymen. "In response, we have taken up several projects to modernize air transport a.
