Restaurant owners in Bangladesh
Restaurant owners want reduction in VAT & NBR’s one-stop service
Bangladesh Restaurant Owners Association (BROA) has urged the NBR to fix 3 percent value added tax (VAT) for hotel-restaurants down from current 7.5 to 10 percent VAT in the upcoming FY 2022-23 budget.
They also called for setting up separate NBR’ VAT units with a one-stop service centre for restaurants and granting industry status to hotels and restaurants.
Currently NBR charged 10 percent on air-conditioned restaurants and 7.5 percent on non-air-conditioned restaurants. They also
Secretary General of BROA Imran Hasan made these demands to the government at a budget discussion meeting with National Board of Revenue (NBR) on Thursday.
The discussion held with the NBR chairman Abu Hena Md. Rahmatul Muneem in the chaired. The NBR members VAT & Tax, BROA president Osman Gani and senior tax officials were present.
In response NBR chairman said, "In order to strengthen the revenue structure of the country, we have started measures so that returns can be given easily. For this, we have started taking returns online from the last financial year and so far, 67,000 people have submitted returns online.”
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He said in many cases VAT and taxes are being reduced and NBR’s aim is to increase the tax net.
“We believe that rising tax net would help to reduce tax rate,” he added
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 percent, VAT on Bengali and street food for workers, day laborers to fix 3 per cent and tax 0.5 percent and canteen on educational institutions VAT 2 percent and tax 0.5 per cent.
He 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.
He said tax officials are filing cases or otherwise harassing restaurant owners for delaying VAT payments for reasons such as sickness.
Imran Hasan said, “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 percent of their profit as VAT now. They have demanded it to be reduced to 30 percent while tax should be 0.5percent.
Besides BROA, several organizations including Tour Operators Association of Bangladesh (TOAB), Bangladesh Shop Owners Association, and Courier Service Association also took part in the discussion.
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