The National Board of Revenue (NBR) has decided to reassess the 15% VAT imposed on the restaurant sector.
On Wednesday, the NBR conveyed this decision to the Restaurant Owners Association in a letter signed by Mashiur Rahman, the first secretary of NBR’s Value Added Tax division.
Earlier, the Restaurant Owners Association had sent a letter to the NBR requesting a reduction in VAT. In response, the NBR stated that the concerns raised by the association would be considered seriously, and the VAT would be reconsidered.
On January 9, the government increased VAT and supplementary duties on restaurants and over a hundred other goods. Through an ordinance, the VAT in the restaurant sector was raised by 5%, bringing it to 15%.
In protest of this decision, the Bangladesh Restaurant Owners Association held a press conference on January 10.
The association demanded a reduction in VAT, saying that adding 15% VAT and 10% supplementary duty would result in a total 25% tax on restaurant meals, which ordinary people cannot afford, even if residents of areas like Gulshan and Banani might be able to pay this amount.
