Restaurant traders demanded reduction of VAT in budget
Sunbd Desk || Published: 2021-06-12 10:09:09 || Updated: 2021-06-12 10:09:09
The businessmen of the concerned sector have demanded to reduce the VAT on all hotels and restaurants in the country from 15 percent. In that case, the VAT rate for four- and five-star hotels and restaurants has been kept at 15 percent, for foreign food vendors at a maximum of 7.5 per cent and for low and medium restaurants and street food at a maximum of 3 to 5 percent.
The demand was made at a press conference after the proposed budget in the conference room of the Bangladesh Restaurant Owners Association on Saturday (June 12). President of the association Osman Gani, advisor Khandaker Ruhul Amin, secretary general Imran Hasan, joint secretary general Firoz Alam Sumon, organizing secretary Syed Mohammad Andalib and others were present at the time.
In addition, it was demanded at the press conference that the maximum rate of VAT on canteens / cafeterias of educational institutions, canteens / cafeterias of industries and hostels should be fixed at a maximum of 2 percent.
Secretary General Imran Hasan said there are different classes of hotels and restaurants in the country. Their business scope is also different. But generally 15 percent VAT is not reasonable. Many people are evading VAT due to high VAT rate.
He added that those who are paying regular VAT are in danger. As the price of their food is high, unequal competition is being created with those who are evading VAT. On the other hand, the government is losing revenue because of this. It is possible to collect VAT of Tk 2300 crore from this sector by fixing VAT at the right rate.
In addition to reducing VAT, restaurants are being brought under a regulatory authority and the status of the industry is being demanded, with 13 government agencies operating the restaurants. You have to coordinate with so many companies to run the business. You have to get a license. It costs a lot to start a business as well as suffering.
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