The Bangladesh Restaurant Owners Association has demanded a uniform tax rate for restaurants and catering services in the 2026–27 fiscal year budget, alongside the withdrawal of the proposed withholding tax on essential goods, saying the sector is under severe financial strain.
The association also placed a seven-point set of proposals aimed at easing operational pressure on the industry, At a press conference on Friday morning at its central office in Bijoynagar, Dhaka, at a press conference on Friday morning at its central office in Bijoynagar, Dhaka,
In a written statement, Secretary General Imran Hasan thanked the BNP-led government and Finance Minister Amir Khasru Mahmud Chowdhury for attempting to frame a business-friendly budget amid high inflation, banking sector challenges and wider economic pressure.
He, however, said rising LPG and electricity prices, along with persistent inflation, have significantly increased operational costs in the restaurant sector, pushing it into a deep crisis. He added that the sector has not received adequate attention in the proposed budget.
The association proposed setting VAT at a flat 5 percent for both restaurants and catering services. At present, restaurants pay 5 percent VAT, while catering services are taxed at 15 percent, a disparity the group said creates unfair competition and complicates tax administration.
It also called for bringing all restaurants, including street food vendors, under VAT registration to reduce irregular competition and boost government revenue.
Imran also demanded the complete withdrawal of the proposed 0.5 percent withholding tax and 10 percent supplementary duty on essential commodities, arguing that such measures would deepen the burden on consumers amid rising living costs and falling purchasing power.
The association welcomed a budget proposal allowing depreciation benefits for new restaurant investments outside Dhaka—60 percent in the first year and 40 percent in the second—calling it supportive for new entrepreneurs. It also urged the government to instruct banks and financial institutions to ensure low-interest loans for the sector.
Calling for structural reforms, the association demanded simplified tax procedures, reduced operational costs, harassment-free tax administration, and greater policy stability to encourage investment and employment generation.
It also proposed restoring monthly VAT collection instead of the proposed three-month system, arguing that monthly compliance ensures better business discipline.
Highlighting regulatory burdens, the association said restaurant operators currently require 10–12 approvals from different agencies, making operations costly and time-consuming. It proposed a “one-stop service” and integrated compliance framework for licensing, monitoring and food safety.
The group also urged the government to formulate a dedicated industrial policy for the restaurant sector, bringing licensing, taxation, investment, skills development, food safety and technology use under a single framework.
Imran Hasan said such fragmentation across multiple agencies creates unnecessary complications and costs for entrepreneurs.
Reiterating its stance on membership rules, the association said enforcement of mandatory membership under the Trade Organizations Act should be ensured for all restaurant businesses.
The association also welcomed government plans to establish specialized training institutes for the culinary and hospitality sector and to set international standards for the industry.
It proposed expanded subsidized training for rural and disadvantaged populations through public and private technical institutions, along with a separate fund if necessary, to develop skilled manpower.
Leaders present at the briefing included Vice President Shah Sultan Khokon, Joint Secretary General Firoz Alam Suman, Organizing Secretary Taufiqul Islam, among others.
