The Bangladesh Restaurant Owners Association (BROA) has said the country’s restaurant sector is facing a severe crisis due to fuel shortages, high inflation, harassment in the name of trade unions, multiple layers of regulatory control and the unchecked spread of illegal street food businesses.
To address the situation, the association has placed six demands, including the introduction of a one-stop service for the sector.
BROA Secretary General Imran Hasan made the remarks at a press conference held at the Shafiqul Kabir Auditorium of the Dhaka Reporters Unity (DRU) in the capital on Tuesday.
The six demands include resolving the acute fuel crisis, stopping harassment and extortion of owners in the name of trade unions, controlling inflation and reducing raw material prices, introducing a one-stop service, bringing unregistered and unhygienic street food businesses under control, and ensuring specific commitments to protect the restaurant sector in political parties’ election manifestos.
Energy crisis and syndicate control
At the press conference, Imran Hasan alleged that pipeline gas connections for restaurants have been systematically closed since 2019, forcing the sector to rely heavily on LPG and sharply increasing production costs.
He also claimed that a powerful syndicate has made it difficult to control LPG prices, adding to the financial burden on restaurant owners. He demanded the immediate resumption of new gas connections for both residential and restaurant sectors.
Extortion and regulatory harassment
Restaurant owners also alleged regular extortion by certain groups operating under the guise of trade unions, warning that attacks and vandalism occur when demands are not met.
They further complained that businesses are being harassed as at least 12 government agencies conduct separate oversight and inspections. The association demanded that mobile court operations be halted unless there are written complaints, and that association representatives be present during such operations.
VAT and tax structure
Although VAT on restaurants currently stands at 5%, the association said traders are under additional pressure due to supplementary duties and source tax.
It proposed the withdrawal of source tax in the next national budget and the retention of the 5% VAT rate for canteen and catering services.
Election manifesto focus
Referring to the upcoming 13th national parliamentary election, BROA leaders said around two crore people are directly and indirectly involved in the restaurant sector, with about three million employed.
They said workers and owners in the sector would support political parties that clearly outline plans for the development and protection of the restaurant industry in their election manifestos.
Other central leaders of the association were also present at the press conference. They warned that failure to resolve the ongoing crisis could jeopardize the livelihoods of millions and have a negative impact on the national economy.
