TBT DESK: Stakeholders in Bangladesh's aviation and tourism industries have called on the government to introduce comprehensive policy reforms, tax incentives and infrastructure support in the proposed FY2026-27 budget to unlock the full potential of the two sectors.

With the government preparing to unveil its first national budget since taking office, industry leaders said the aviation and tourism sectors require more than financial allocations, stressing the need for a long-term policy framework to position them as major contributors to economic growth.

Representatives of the aviation industry urged the government to provide tax relief on jet fuel, aircraft leasing and airline operations, arguing that high operating costs continue to affect the competitiveness of local carriers and keep airfares elevated.

Secretary General of the Aviation Operators Association of Bangladesh and Managing Director of NOVOAIR, Mofizur Rahman, said a predictable taxation regime for aviation fuel and fiscal support for airlines would help reduce operating costs and stimulate passenger demand.

He also advocated VAT exemptions on jet fuel, lower taxes on aircraft leasing and maintenance, and the rationalisation of aviation-related duties.

Industry leaders further called for adequate budgetary allocations to ensure the operational launch of the Third Terminal at Hazrat Shahjalal International Airport. Aviation analyst ATM Nazrul Islam emphasised the need for recruitment, staff training, security systems and operational preparedness to ensure the terminal begins functioning efficiently.

The sector also sought increased investment in airport modernisation, cargo logistics, navigation infrastructure and digital aviation systems as part of Bangladesh's ambition to emerge as a regional aviation hub.

Meanwhile, tourism stakeholders highlighted the urgent need to implement the National Tourism Master Plan, describing it as the sector's foremost priority. They called for greater investment in tourism clusters, eco-tourism initiatives, community-based tourism and coastal tourism projects, including the Exclusive Tourist Zone at Sabrang.

President of the Tour Operators Association of Bangladesh, Mohammad Rafeuzzaman, urged the government to offer tax exemptions on tourism-related equipment, tourist vehicles and hospitality infrastructure to attract private investment. He also recommended incentive packages for inbound tourism and the introduction of an electronic visa system to facilitate foreign tourist arrivals.

TOAB Director Md Taslim Amin Shovon said tourism has traditionally received less policy attention despite its significant contribution to employment and economic activity, while Toufiq Rahman stressed the importance of coordinated action among government agencies to support sustainable tourism development.

Industry representatives said the success of the upcoming budget would ultimately be measured not by the size of allocations alone, but by the effectiveness of reforms aimed at fostering long-term growth in both aviation and tourism. They expressed optimism that the budget would translate the government's development ambitions into tangible progress for the two sectors.