The Bangladesh Restaurant Owners Association (BROA) has urged the government to introduce a uniform 5.0 per cent VAT and tax rate for both restaurants and catering services.
It has also requested the withdrawal of the source tax and supplementary duty (SD) on essential commodities proposed in the FY27 national budget.
The association raised the demands at a press conference at its office in the capital on Friday.
Presenting a written statement, BROA Secretary General Imran Hasan said the restaurant industry was facing mounting challenges due to high inflation, rising utility costs, and a difficult business environment.
While appreciating the BNP-led government's efforts to prepare a business-friendly budget amid economic challenges, he said the increasing prices of Liquefied Petroleum Gas (LPG) and electricity had significantly raised operational costs for restaurants, pushing many businesses into a crisis.
The association proposed fixing VAT and taxes at a uniform rate of 5.0 per cent for all restaurant and catering establishments.
At present, restaurants pay 5.0 per cent VAT, while catering services are subject to a 15 per cent rate.
"The existing disparity should be removed as different VAT rates create unequal competition and complicate tax administration," Hasan said.
He also called for bringing all restaurants, including street food vendors, under VAT registration to ensure a level playing field and expand the government's revenue base.
The association further demanded the complete withdrawal of the proposed 0.5 per cent source tax and 10 per cent supplementary duty on essential commodities, arguing that such measures would add to the financial burden on consumers already grappling with inflation and rising living costs.
Hasan welcomed the government's proposal to provide accelerated depreciation benefits for new restaurant and tourism investments outside Dhaka, saying it would encourage entrepreneurship and investments.
However, he urged the Ministry of Finance and the Bangladesh Bank to facilitate low-interest loans for restaurant businesses through banks and financial institutions.
The association also recommended retaining the existing monthly VAT payment and return submission system instead of extending the payment period to three months, as proposed in the budget.
Highlighting regulatory challenges, Hasan said restaurant operators currently needed to obtain 10-12 types of approval from different government agencies, making the process costly and time-consuming.
"We seem to be living in an age of ignorance. There are black laws and allegations of harassment everywhere," he said, calling for a harassment-free business environment.
The association proposed introducing a one-stop service platform and a comprehensive compliance framework to simplify licensing procedures, reduce costs, and improve food safety monitoring.
It also demanded a dedicated industrial policy for the restaurant sector, alongside institutional training programmes for workers and the establishment of specialised culinary training institutes to enhance industry standards.
Among others, BROA Vice-President Shah Sultan Khokon, Joint Secretary General Firoz Alam Sumon, and Organising Secretary Toufiqur Islam attended the press conference.
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