The Bangladesh Restaurant Owners Association has proposed that all types of restaurants, including street food vendors, be brought under VAT registration and that a uniform 5 percent VAT rate be applied to both restaurant and catering services. The proposal was presented at a press conference held at the association’s headquarters in Bijoynagar, Dhaka, following the announcement of the proposed 2026–27 national budget. The association argued that the current system, which imposes 5 percent VAT on restaurants and 15 percent on catering services, creates inequality in business competition and complicates tax administration.

In a written statement, the association’s secretary general Imran Hasan said that rising LPG and electricity prices and high inflation have significantly increased operating costs in the restaurant sector, which has not received adequate attention in the proposed budget. The association also called for a business-friendly tax environment, one-stop service for restaurant operations, a specific industrial policy for the sector, and mandatory certification from the association.

The group welcomed the government’s proposal to offer depreciation benefits for new restaurant investments outside Dhaka but urged authorities to ensure low-interest loans, reduce operational costs, and maintain policy stability to encourage investment and job creation.