NBR withdraws airfare excise duty, VAT for hajj pilgrims

The National Board of Revenue (NBR) has withdrawn the excise duty on inbound and outbound airfare for hajj pilgrims, as well as the value-added tax (VAT) on three types of service charges for reducing overall hajj expenses.

"Costs for hajj pilgrims were increasing due to rising airfares and other factors. To make hajj expenses more affordable, excise duty and VAT in three categories have been exempted," said a NBR press release on Monday night.

However, the interim government recently announced the hajj package which is significantly lower than the previous year's cost.

Earlier on 30 October, the government announced two separate cost-effective Hajj packages for the next year, reducing expenses in comparison with the previous year.

The cost for Standard Hajj Package-1 is set at Tk 4,78,242, and Standard Hajj Package-2 at Tk 5,75,680, allowing each of the pilgrims to save Tk 109,148 and Tk 11,710 respectively compared to the last year. 

Both the packages offer transportation and quality accommodation.

In the private sector, the Hajj package was priced at Tk 4, 83,156.