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Travel Agents on 1% Tourism Development Levy

The Travel Agents Association of Sri Lanka has written to Minister of Tourism, Anura Bandaranaike, Deputy Minister, Arjuna Ranatunge and Chairman, Sri Lanka Tourist Board, Udaya Nanayakkara on the Tourism Development Levy of 1% from outbound ticketing sales by travel agents.

Following is the text of the letter.

" We write with further reference to our submissions made on June 22, in connection with the imposition of the Tourism Development Levy of 1% by the Sri Lanka Tourist Board, on commissions earned, on airline ticketing sales by Outbound Travel Agents.

The exemption has been granted by letter of the former Secretary-Ministry of Tourism, Dr. P Ramanujam, which to the best of our knowledge was granted on the basis of Cabinet approval, subject to final ratification in Parliament.

We request you to seek the opinion of the Attorney General, to see how best the exemption can be continued to be granted subject to final approval in Parliament. Several members who have made applications for renewal of licences with the Sri Lanka Tourist Board are being called upon to pay the Development Levy of 1% on airline ticketing sales, which has resulted in many agents being refused renewal unless the Development Levy is paid.

In the event of approval not been ratified by Parliament, our members can be called upon to pay the 1% Development Levy on airline ticketing sales. Our members will pay the 1% levy on any other related services carried out by our members, as some members are engaged in both outbound ticketing sales, inbound tours, and other tourist services".

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