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 for broader compliance. Despite a reduction in restaurant VAT from 15 percent to 5 percent, businesses are still facing pressure from supplementary duties, source tax, and other fees, according to Imran Hassan, BROA’s secretary general. Imran called for the removal of source tax and proposed a fixed 5 percent VAT for canteens and catering services.
Highlighting that approximately 80 percent of restaurants in the country operate without registration, Imran expressed concerns about health and tax regulation violations, jeopardizing public health and the formal restaurant industry. He emphasized the importance of bringing all restaurants into the tax system to prevent compliant businesses from being discouraged by the existing disparities.
Addressing energy challenges, Imran identified LPG shortages as a significant issue affecting restaurant operations and contributing to food price increases. He recommended increased LPG imports, enhanced supply chain management, and stricter market oversight. Imran also advocated for the restoration of new pipeline gas connections for restaurants and the introduction of LPG cards for business proprietors.
Imran pointed out that cumbersome licensing procedures and inadequate coordination among government bodies hinder food safety enforcement. He suggested streamlining the licensing process through a “one-stop service” to reduce delays, simplify procedures, and lower costs, coupled with intensified food safety oversight.
The BROA secretary general criticized the perceived harassment during regulatory inspections and proposed the inclusion of business community representatives in inspection teams. He called for digitized licensing systems, fair penalty practices, and business-friendly policies to support investment and job creation.
Imran warned against the encroachment of large corporations on small and medium enterprises, urging the government to implement measures preventing monopolies and ensuring fair competition. He reiterated the longstanding request to recognize the restaurant sector as an industry, advocating for bank loans, tax incentives, and SME policy backing.
The association also sought approval for beef imports and recommended government-led training initiatives for unskilled laborers. It proposed structured training programs in food safety, hygiene, customer service, and modern restaurant management to enhance skills and facilitate overseas employment for up to one million trained workers over the next five years.