FE REPORT
Amid stakeholders’ demand, the National Board of Revenue (NBR) has decided to review the recently imposed Value Added Tax (VAT) on internet services, medicines, restaurants, and hotels.
In response to a January 5 letter from the Bangladesh Restaurant Owners Association, the NBR announced in a circular issued on Wednesday that it would reconsider the VAT changes with due significance.
The NBR also sought cooperation from the association to resolve the matter.
Earlier, on January 9, the Bangladesh Restaurant Owners Association threatened to go on strike unless the government reconsidered its plan to increase VAT on food at hotels and restaurants.
Currently, patrons at regular and air-conditioned (AC) restaurants pay a 5 per cent VAT, which is proposed to increase to 7.5 per cent. Meanwhile, the VAT for non-AC establishments is slated to double from 7.5 per cent to 15 per cent under the proposed changes.
Criticising NBR, an official from the restaurant owners' association, said: "Only about 525,000 businesses are VAT-registered, with roughly 350,000 paying VAT regularly. The NBR has not taken effective steps to bring the millions of unregistered businesses under the VAT net."
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NBR to review VAT on internet, medicines, restaurants, hotels
FE Team | Published: January 15, 2025 23:28:55
NBR to review VAT on internet, medicines, restaurants, hotels
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