The Bangladesh Restaurant Owners Association (BROA) has officially urged the government to establish a uniform Value Added Tax (VAT) rate for restaurants and catering services while simultaneously calling for the complete withdrawal of proposed source taxes on essential commodities in the national budget for the fiscal year 2026-27.

The association unveiled its seven-point charter of demands during a press conference held at its central office in the capital's Purana Paltan area on Friday morning.

During the briefing, BROA Secretary General Imran Hassan acknowledged the efforts of the government and Finance Minister Amir Khosru Mahmud Chowdhury to draft a business-friendly budget amidst significant macroeconomic hurdles, including high inflation and volatility within the banking sector.

However, he cautioned that the restaurant industry remains in a state of deep crisis due to surging operational costs caused by spikes in electricity and LPG prices.

Expressing deep dissatisfaction with the current regulatory climate, Imran Hassan stated, "It feels as if we are living in the Dark Ages (Ayyam-i Jahiliyya). There are only black laws and harassment everywhere."

He urged the newly formed government to take decisive action to provide a harassment-free business environment.

A primary demand put forward by the association is the implementation of a uniform 5 percent VAT for both restaurants and catering services to eliminate market discrimination, noting that currently, restaurants pay 5 percent while catering services are subjected to 15 percent.

Furthermore, BROA advocated for bringing all food establishments, including street food vendors, under the VAT registration net to enhance government revenue and curb unfair competition.

To ease the burden on consumers, the association urged the government to scrap the proposed 0.5 percent source tax and 10 percent supplementary duty on essential commodities.

While the association welcomed the government's offer of a 60 percent depreciation benefit in the first year and 40 percent in the second year for new restaurant machinery outside Dhaka, they requested the Ministry of Finance and Bangladesh Bank to facilitate low-interest loans for the sector.

Additionally, the association rejected the Finance Minister’s proposal to extend the VAT payment period to three months, insisting that the previous system of monthly payments and return submissions should be maintained to ensure a smooth business workflow.

Highlighting the excessive "red-tape bureaucratic hurdles," Hassan noted that a restaurant currently requires 10 to 12 separate approvals from various authorities, which he argued breeds systemic harassment and inflates costs.

To address this, BROA demanded the immediate implementation of a "One-Stop Service" under an integrated compliance framework, the creation of a specific industry policy for the restaurant sector, and making BROA membership mandatory for launching any restaurant business in accordance with the Trade Organizations Act.

The press conference was also attended by BROA Vice President Shah Sultan Khokon, Joint Secretary General Firoz Alam Sumon, and Organizing Secretary Towfikur Islam.

With Inputs from UNB