NN Online:
The Bangladesh Restaurant Owners Association has warned of a strike if the government does not reconsider its decision to raise the Value Added Tax (VAT) on hotels and restaurants.
The restaurant owners issued the warning at a press conference held at a hotel in Dhaka. Restaurant Owners Association Secretary General Imran Hasan expressed concern at the press conference highlighting the current high inflation rate.
He said, “The plan would directly impact the general people. The government could reduce administrative costs and cut unnecessary projects to address budget deficits instead of imposing such a heavy tax burden on businesses.”
The National Board of Revenue (NBR) has proposed raising VAT on food at hotels and restaurants. Currently, patrons at regular and air-conditioned (AC) restaurants pay a 5 per cent VAT, which could rise to 7.5 per cent.
The VAT for non-AC hotels is proposed to be doubled from 7.5 per cent to 15 per cent. Hasan criticised the government for relying on VAT as a primary revenue source instead of expanding direct taxes.
“Only about 5,25,000 businesses are VAT-registered, with roughly 3,50,000 paying VAT regularly. The NBR has not taken effective steps to bring the millions of unregistered businesses under the VAT net,” he said.
