Owners Threaten To Shut Restaurants Indefinitely

Bangladesh Restaurant Owners Association has urged to keep away from the decision to increase VAT rates in hotels and restaurants. 

They have also threatened to shut restaurants for an indefinite period if the decision is not withdrawn.

The warning came from a press briefing held at a hotel in the capital on Thursday morning.

Imran Hasan, secretary general of the organisation, said, "Where high inflation has been prevailing for more than two years, the interim government has taken the initiative to suddenly triple VAT in the middle of the fiscal year without expanding the tax base or taking measures to prevent tax evasion. This will have a direct impact on the common people."

The National Board of Revenue (NBR) is planning to increase the VAT rate on hotels and restaurants, it is learnt.

Currently, 5 per cent VAT is charged for dining in general quality and air-conditioned (AC) restaurants. This may increase to 7.5 per cent.