The National Bureau of Revenue (NBR) has reduced VAT for restaurants with in a bid to help revive the restaurant sector which is facing a tremendous set back from the effects of the coronavirus pandemic.
The restaurateurs have welcomed the move and said the decision was a positive step forward in overcoming the multidimensional losses the industry had been suffering from since the outbreak in March last year.
Passing reaction in this regard, Imran Hasan, General Secretary of Bangladesh Restaurant Owners Association (BROA), said that they submitted a set of demands for the proposed budget of FY22, though not all of them were met. However, one of the main demands was to reduce the VAT rate, which the government has taken into consideration finally.
Syed Andalib Rahman, Organising Secretary of BROA, said, "We need a lot of cooperation from the government to turn around this pandemic. We are thankful to all the concerned for this decision.
However, supplementary duty is also a burden in this sector. A provision in this regard is also important," he added.
He further mentioned they do not get SME loans as the sector is labeled as a sector dealing with perishable goods. The government should remove this obstacle through dialogue and give them long-term loans on easy terms from the SME Foundation and a monthly incentive for the officials and employees of the hotel and restaurant sector for monthly food assistance for them for the period of July to December of this year.
According to BROA, there are currently about 60,000 restaurants across the country, with more than 8,000 in the capital alone. Close to 2.8 million people depend on the restaurant industry for their livelihoods, while the number is several times higher if it includes the supportive sectors.
