- Restaurant owners in Bangladesh threaten to strike due to a VAT increase on food bills
- The Bangladesh Restaurant Owners Association may close restaurants indefinitely if the government does not retract the VAT hike
- Initial protest plans include forming a human chain followed by a one-day restaurant closure
- The government plans to increase VAT from 5 percent to 15 percent, adding to a 10 percent supplementary duty, totaling a 25 percent tax on consumers
- Restaurant owners argue the tax increase is unrealistic and burdensome amid a 30 to 40 percent business decline due to inflation
- The sector fears further consumer spending reduction due to the new tax burden
- Criticism is directed at the government for favoring large businesses and neglecting small entrepreneurs
- A previous VAT reduction from 15 percent to 5 percent had increased VAT collection by 19 percent
- Reversing the VAT reduction could negatively impact businesses and revenue collection
- The association is open to working with the National Board of Revenue to improve VAT registration in the sector
- Currently, a significant portion of restaurants are not covered by VAT
Source: thedailystar.net
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
