Restaurants seek tax cuts, one-stop service amid cost crisis

Bangladesh’s restaurant owners have demanded sweeping policy and regulatory reforms, including withdrawal of key taxes, a one-stop approval system, uninterrupted LPG supplies and an end to what they describe as harassment by government agencies.

The Bangladesh Restaurant Owners Association placed a nine-point set of demands at a press conference at a hotel in Paltan on Saturday, warning that rising food and operating costs, coupled with falling sales, were putting the industry under severe pressure.

Association Secretary General Imran Hasan said prices of almost all major food items, including rice, lentils, edible oil, meat, fish, spices, vegetables and eggs, had risen, while costs of gas, electricity, LPG, water, rent, transport and labour had also increased.

Restaurant sales have fallen by up to 30 per cent, he said, as operators cannot raise menu prices in line with higher costs without risking a further loss of customers.

“The restaurant sector is going through a severe crisis due to rising prices of essential food items coupled with increasing operational costs. It has become difficult for restaurant owners to run their businesses,” Imran said, reading out a written statement.

Association President Shah Sultan Khokon, First Joint Secretary Md Firoz Alam Sumon, Organising Secretary Toufiqul Islam and Joint Organising Secretary Kamrul Hasan Bipu were present.

The association’s key demands include the complete withdrawal of the 10 per cent supplementary duty and 2 per cent tax at source, an end to harassment during VAT collection and immediate steps to ensure uninterrupted LPG and fuel supplies.

It also demanded an end to what it called unjustified intervention by district administrations and other authorities over restaurant menu prices.

“Price adjustments in the restaurant sector should not be treated as an offence. Restaurant owners should be allowed to set reasonable prices based on their actual cost structures,” Imran said and alleged that restaurant owners were facing pressure and harassment over price adjustments despite continuously rising operating costs.

The association also demanded the immediate introduction of a one-stop service, saying restaurants currently need to obtain 10 to 12 approvals from different government departments.

Imran said the fragmented approval process was costly and time-consuming and hampered both business operations and effective regulatory oversight. He proposed an integrated compliance system, along with training and skills development for government officials and restaurant workers.

On energy costs, the association demanded uninterrupted LPG supplies for commercial users, measures to stabilise prices and strict market monitoring to prevent artificial shortages and overcharging. It also called for steps to reduce load-shedding.

The owners demanded an end to harassment and unnecessary financial penalties during drives by different government agencies.

They also called for immediate implementation of the decision to recognise the restaurant sector as an industry, formulation of a dedicated industrial policy and mandatory membership of the restaurant owners’ association.

The association further demanded an end to harassment and extortion of businesspeople through political or group-based labelling and called for a stable and conducive business environment. It proposed training and incentives for restaurant workers and measures to bring the sector up to international standards.

The association said implementing the demands was necessary to sustain the industry, protect employment and ensure consumers continue to receive safe and quality food services.