- Bangladesh Restaurant Owners Association threatens nationwide strike over proposed VAT increase on hotels and restaurants
- Announcement made during a press conference, highlighting negative impacts on businesses and consumers
- Current VAT rates are 5 percent for regular and air-conditioned restaurants, with a proposal to increase to 7.5 percent
- Non-AC hotels could see VAT rates double from 7.5 percent to 15 percent, with an additional 10 percent supplementary duty on food
- Total taxes could reach 25 percent, deemed unrealistic by Imran Hasan, secretary general of the association
- Hasan warns that the VAT hike could lead to a 30-40 percent drop in restaurant business due to high inflation
- Association criticizes government for pressuring small businesses and favoring large corporations
- Proposed VAT increase could worsen inflation and negatively affect employment in the sector
- Government criticized for over-reliance on VAT instead of broadening tax base or tackling tax evasion
- Only 525,000 businesses are VAT-registered with fewer than 350,000 paying regularly
- Hasan suggests focusing on bringing unregistered businesses into the VAT system rather than increasing rates
- Historical VAT rates for restaurants were once 15 percent, reduced to 5 percent after lobbying, leading to a 19 percent increase in VAT collection
- Restaurant owners plan phased protests including human chains and potential shutdowns leading to an indefinite strike if demands are not met
- Criticism of government policies described as driven by bureaucracy and influenced by the International Monetary Fund, worsening poverty
- Calls for government to adopt fair and inclusive tax policies
Source: thefinancialexpress.com.bd
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.
