Dhaka, Jan. 16 -- The International Air Transport Associa-tion (IATA) said that the recent imposition of VAT by Bangladesh government is hurting aviation sector development and urged the government to support the development of the aviation industry by removing the 15 per cent Value Added Tax (VAT) on aeronautical and related services, rendered by the Civil Aviation Authority of Bangladesh (CAAB) on international air transport.

"The air transport sector is a key contributor and enabler for Bangladesh's economy. It generates USD 769 million in Gross Domestic Product (GDP) and provides 129,000 jobs.

However, the full potential that the air transport sector brings cannot be realised without a cost-competitive environment," wrote Alexan-dre...