Restaurant owners demand VAT reduction in proposed budget

Bangladesh Restaurant Owners Association (Broa) has demanded to reduce the Value Added Tax (VAT) for moderate, lower categories and fine-dining restaurants in the proposed national budget of 2021-22.

They have also made the demand to cancel the 10 per Cent supplementary tax during a press conference on Saturday, organised to express their opinion on the proposed budget.

"The proposed budget for 2021-22 FY mentioned 15per Cent VAT for air-conditioned (AC) and 5per Cent for non-air-conditioned restaurants. However, we want it to be reduced to 3-5per Cent for lower and moderate categories, and a 7.5per Cent VAT for fine-dining restaurants," Imran Hasan, secretary-general of Broa, said at the event.

"Earlier, the non-AC restaurants had to pay 7.5per Cent VAT. Since AC is a general necessity nowadays, these categories for VAT payment should be abolished," he added.

Instead, Broa proposed a 15per Cent VAT for five-star and four-star categories hotels and restaurants. Besides, the association proposed a 2per Cent VAT for the canteen or cafeteria of educational institutions, hostels and industrial factories.  

The country has nearly 60,000 restaurants and around 30 lakh people are involved in the sector, according to Broa.

The association further mentioned that around 30per Cent of the restaurant owners have permanently shut down their businesses and many have shifted ownership amid the coronavirus pandemic.

Among others, Bora President Osman Gani, Organising Secretary Syed Mohammad Andalib, and Publicity Secretary Ashfaq Rahman Asif were present at the event.