Dhaka, Jan 10 (V7N) — The government's recent decision to impose a 15% Value Added Tax (VAT) on quality restaurant food has sparked outrage among both customers and restaurant owners. The hike, effective from Thursday, triples the previous VAT rate of 5%, placing additional financial strain on consumers and businesses alike.

Nusrat Tamima, a diner at a restaurant in Dhanmondi, expressed her frustration upon discovering the increased VAT. "This rise from 5% to 15% feels like cutting into my pocket," she said. Under the new policy, a meal worth 1,000 taka now incurs a VAT of 150 taka, up from 50 taka, effectively adding 100 taka to the bill.

Restaurant owners are also alarmed, warning that the increased VAT could jeopardise the already struggling industry. "This decision creates an extra burden at a time when we are trying to recover from rising costs and economic challenges," said a restaurant manager in Dhaka.

The VAT hike is not limited to restaurants. Items like tissues, clothing, dry food, and juices are also subject to the increased tax. Consumers argue that this policy exacerbates their struggles amid surging commodity prices.

"This decision is tone-deaf to the realities we are facing," said a frustrated customer. "Instead of providing relief, the government is adding to our financial burden."

The VAT hike has prompted calls for the government to reconsider the policy, as both restaurateurs and consumers struggle to cope with the rising costs.

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