Leaders of the Bangladesh Restaurant Owners Association have demanded for 3 per cent of value-added tax (VAT) cut on sales of all hotels and restaurants in the upcoming fiscal year 2022-23.
Secretary-General of the organization Imran Hasan made these demands to the government at a budget discussion meeting with National Board of Revenue Chairman Abu Hena Rahmatul Muneem at the NBR office on Thursday.
Imran Hasan said the VAT rate on four and five-star hotels and restaurants is 15 per cent, VAT on the sale of foreign food is 10 per cent, VAT on Bengali and street food for workers, day labourers are 3 per cent and the tax rate is 0.5 per cent and canteen on educational institutions 2 per cent and tax 0.5 per cent.
He also said that EFD machines should be installed in all types of hotels and restaurants to ensure 100 per cent collection of VAT from this sector.
“VAT on restaurant space/establishment should be 0 per cent. In the case of income tax assessment, restaurant owners have to pay up to 35 to 40 per cent of their profit as VAT now. They have demanded it be reduced to 30 per cent while tax should be 0.5 per cent", Imran added.
At present, air-conditioned restaurants have to pay 10 per cent and non-air-conditioned restaurants 7.5 per cent VAT on the sale.
They also demanded separate NBR units for VAT, setting up one-stop service centres for restaurants, and granting industry status to hotels and restaurants.
Bangladesh Restaurant Owners Association President Osman Gani and other senior leaders and senior NBR officials were present in the meeting.
