Staff Correspondent: Restaurant owners have called for a uniform Value Added Tax (VAT) rate for restaurants and catering services, withdrawal of proposed taxes on essential commodities, and the creation of a harassment-free business environment to help the sector navigate mounting operational challenges.

The demands were placed by the Bangladesh Restaurant Owners Association (BROA) at a press conference held at its central office in Purana Paltan on Friday, where the organisation unveiled a seven-point charter of proposals regarding the proposed national budget for FY2026-27.

Reading out a written statement, BROA Secretary General Imran Hassan welcomed the BNP-led government's efforts to formulate a business-friendly budget amid persistent inflation, macroeconomic pressures and instability in the banking sector.

However, he said the proposed budget had failed to adequately address the difficulties facing the restaurant industry, which has been struggling with rising operating costs due to higher electricity and LPG prices, alongside sustained inflationary pressures.

“The restaurant sector is passing through a difficult period as business costs continue to rise,” he said, urging policymakers to introduce measures that would ease the burden on entrepreneurs and support business sustainability.

Expressing concern over regulatory complexities, Imran Hassan criticised what he described as excessive bureaucratic requirements and harassment faced by business operators.

He urged the government to create a more supportive and predictable regulatory environment to enable businesses to survive and grow.

Among its key proposals, BROA demanded the introduction of a uniform 5 per cent VAT rate for both restaurants and catering services. At present, restaurants are subject to a 5 per cent VAT, while catering services are required to pay 15 per cent, a disparity the association argues creates an uneven playing field.

The organisation also called for all food establishments, including street food vendors, to be brought under the VAT registration system, saying such a move would reduce unfair competition and help increase government revenue.

To ease the cost burden on consumers, BROA urged the government to withdraw the proposed 0.5 per cent source tax and 10 per cent supplementary duty on essential commodities.

The association said the additional tax burden could further increase food prices and negatively affect both businesses and consumers.

While welcoming the government's proposal to allow accelerated depreciation benefits for restaurant machinery outside Dhaka—60 per cent in the first year and 40 per cent in the second year—BROA requested special policy support from the Ministry of Finance and Bangladesh Bank to facilitate access to low-interest loans for restaurant owners.

The organisation also opposed the Finance Minister’s proposal to extend the VAT payment period to three months, arguing that the existing monthly VAT payment and return submission system should remain in place to ensure smoother business operations and financial management.

Highlighting administrative challenges, Imran Hassan noted that entrepreneurs currently require between 10 and 12 separate approvals from different government agencies to operate a restaurant, a process he said often increases costs and creates opportunities for harassment.

To address these concerns, BROA called for the immediate introduction of a one-stop service mechanism under an integrated compliance framework, the formulation of a dedicated industry policy for the restaurant sector and mandatory membership of the association for restaurant operators in line with the Trade Organizations Act.

The association said these measures would help improve regulatory efficiency, encourage investment and support the sustainable development of the country's growing food service industry.

BROA Vice-President Shah Sultan Khokon, Joint Secretary General Firoz Alam Sumon and Organising Secretary Towfikur Islam, among others, were present at the press conference.