The Bangladesh Restaurant Owners’ Association (BROA) has urged the government to maintain reasonable VAT and tax rates in the upcoming national budget while expanding the tax net to enhance compliance.
During a press briefing at Dhaka Reporters Unity, Imran Hassan, the secretary general of BROA, highlighted that despite the reduction of VAT on restaurants from 15 percent to 5 percent, businesses are still facing challenges due to supplementary duties, source tax, and other levies.
Imran called for the elimination of source tax and proposed a fixed 5 percent VAT for canteen and catering services. He expressed concerns that approximately 80 percent of restaurants in the country operate without proper registration, potentially circumventing health and tax regulations to offer cheaper food. This situation poses risks to public health and the formal restaurant industry, according to him.
Imran emphasized the importance of bringing all restaurants into the tax system to prevent compliant businesses from being discouraged by the existing imbalance.
Addressing the energy crisis, Imran identified LPG shortages as a significant hurdle impacting restaurant operations and driving up food prices. He advocated for increased LPG imports, better supply management, and enhanced market oversight. Additionally, he urged the restoration of new pipeline gas connections for restaurants and the introduction of LPG cards for business proprietors.
Imran criticized the intricate licensing procedures and inadequate coordination among government bodies, making it challenging to enforce food safety regulations. He proposed a streamlined “one-stop service” for licensing to simplify the process, reduce delays, and lower costs, coupled with more robust food safety monitoring.
He also raised concerns about regulatory inspection harassment and recommended involving business community representatives in inspection teams. Imran called for the adoption of user-friendly digital systems for licensing and renewals, an end to unjust fines, and the implementation of business-friendly policies to promote investment and job creation.
Imran cautioned against the encroachment of large corporations on small and medium enterprises, underscoring the need for policies to prevent monopolies and ensure fair competition in the sector.
Echoing longstanding requests, Imran urged the government to implement its 2022 decision to recognize the restaurant sector as an industry, advocating for access to bank loans, tax incentives, and SME policy support.
Furthermore, he demanded an end to extortion and harassment associated with trade unions, emphasizing the necessity of a stable, secure, and corruption-free business environment.
The association also proposed allowing beef imports and suggested government-led training programs for unskilled workers to enhance their skills in food safety, hygiene, customer service, and modern restaurant management. These structured training initiatives could potentially facilitate overseas employment for up to one million trained workers over the next five years.
