The NBR (National Board of Revenue) has decided to reduce the restaurant VAT rate from 15% to 5% to avoid public agitation and protests of that threatened to; the increase had taken effect on January 9. The decision followed numerous complaints from restaurant owners and customers about the sudden spike.
The change was requested by the Bangladesh Restaurant Owners’ Association, which said the higher VAT was too high for restaurants already struggling with rising costs. They also cautioned that it could deter people from dining out, hurting businesses and the economy.
The 5% VAT had been in place for years, so the jump to 15% caused a lot of concern. By bringing back the old rate, the NBR hopes to ease the burden on restaurants and make dining out more affordable again. Restaurant owners and customers have welcomed the decision, hoping it will help and expand the industry.
Source: Business Inspection BD
