The decision to increase the VAT on restaurant food bills in the country is going to be revoked. As a result, VAT will not increase in the restaurant. 5 percent VAT will be levied on restaurant food bills as before. The National Board of Revenue (NBR) has taken this decision. An order in this regard will be issued today.

This information was given by Barrister Md. Badruzzaman Munshi, Second Secretary of the VAT Law and Rules Department of the NBR, on Thursday (January 16).

He said that on January 9, an ordinance was issued to increase VAT in the hotel and restaurant sector to 15 percent. However, it is being rolled back to the previous rate. That is, VAT in the hotel and restaurant sector will remain at 5 percent.

After the ordinance was issued on January 9, criticism started in various quarters. The Bangladesh Restaurant Owners Association decided to form a human chain across the country on Thursday demanding a reduction in the increased VAT rate.

In this situation, in a letter signed by First Secretary (VAT Policy) Mashiur Rahman on Wednesday (January 15), the NBR said that the National Board of Revenue has seriously reviewed the letter sent by the Bangladesh Restaurant Owners Association and has decided to reconsider the VAT rate in the restaurant sector. In this situation, the NBR has sought the association’s special cooperation in increasing revenue and maintaining peace and order, including the scope of VAT.

Meanwhile, Md. Badruzzaman Munshi said that thoughts are being raised to reduce VAT on several more products, but no decision has been made in this regard yet.