The Bangladesh Restaurant Owners Association (BROA) has threatened to go for an indefinite strike if the government does not reconsider its plan to increase Value Added Tax (VAT) on hotels and restaurants.
The restaurant owners issued the warning at a press conference held at a hotel in Dhak on Thursday.
Imran Hasan, general secretary of the BROA, said that initially they would form a human chain protesting the plan to hike VAT rate amid the current high inflation rate. If the government does not consider, they would close their restaurants across the country for a day as token protest.
He also mentioned that if the government remain unresponsive, they would shut the restaurants for indefinite period.
Meanwhile, the warning comes in response to the government's recent move to hike VAT to a standard of 15 per cent on 43 goods and services. The VAT for non-AC hotels is proposed to be doubled from 7.5 per cent to 15 per cent.
So for, the government advisory council has approved the hike, but the ordinance is yet to be officially published.
Imran Hasan said the plan would directly impact the general people.
He suggested that the government could reduce administrative costs and cut unnecessary projects to address budget deficits instead of imposing such a heavy tax burden on businesses.
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