Restaurant owners in Bangladesh have urged the government to reduce Value-Added Tax (VAT), resume new pipeline gas connections and end \u2018bureaucratic harassment\u2019 by regulatory agencies to protect the industry from mounting economic instability.<\/p>\n\n\n\n
Bangladesh Restaurant Owners Association (BROA) made the demand at a press conference held at Dhaka Reporters Unity (DRU) on Sunday, ahead of the national budget for the fiscal year 2026-27.<\/p>\n\n\n\n
The association also placed an 11-point demand including maintaining VAT and tax rates at \u2018tolerable levels\u2019 and introducing a one-stop service for licenses and permits.<\/p>\n\n\n\n
While the VAT on the sector was previously reduced from 15 percent to 5 percent following discussions with the National Board of Revenue (NBR), leaders claimed they are still struggling under a 10 percent supplementary duty, source taxes, and various other levies.<\/p>\n\n\n\n
They called for a flat 5 percent VAT rate for canteens and catering services and the total withdrawal of source taxes.<\/p>\n\n\n\n
“High tax rates discourage compliance and lead to evasion,” said BROA Secretary General Imran Hasan. “Reducing rates while expanding the tax net would ultimately increase government revenue.”<\/p>\n\n\n\n
Hasan noted that the industry has yet to fully recover from the Covid-19 pandemic, with global instability and rising fuel costs further inflating operational expenses.<\/p>\n\n\n\n
“The uncontrolled rise in commodity prices has pushed essential goods beyond consumers’ purchasing power. Its direct and severe impact is now being felt across the restaurant sector,” Hasan added.<\/p>\n\n\n\n
The association also highlighted the energy crisis, noting that a shortage of Liquefied Petroleum Gas (LPG) has disrupted operations.<\/p>\n\n\n\n
They urged the government to increase LPG imports and restart new pipeline gas connections to stabilise food prices.<\/p>\n\n\n\n
The association also hit out at regulatory bodies including Rajuk, the Fire Service, and the Department of Environment accusing them of creating \u2018bureaucratic complications\u2019 and unnecessary pressure.<\/p>\n\n\n\n
According to BROA, opening a restaurant currently requires 10 to 12 different approvals, a process that can take up to six months.<\/p>\n\n\n\n
Hasan argued that these hurdles are forcing many into \u2018systematic\u2019 non-compliance.<\/p>\n\n\n\n
Other key demands include reopening trade license services under the two Dhaka city corporations, permitting beef imports to lower costs, preventing \u2018corporate aggression\u2019 within the sector, and launching government-supported training programs for unskilled workers.<\/p>\n\n\n\n
The association also revealed that approximately 80 percent of restaurants in the country remain unregistered, often operating without proper hygiene standards or tax contributions.<\/p>\n","protected":false},"excerpt":{"rendered":"