Dhaka, Jan 15 (V7N) — The National Board of Revenue (NBR) has decided to revise VAT rates in response to strong criticism from various business sectors. A letter was sent to the Restaurant Owners' Association on Wednesday, confirming a reduction in VAT on food served in AC restaurants.

For years, VAT on food in AC restaurants stood at 5 percent. However, the NBR's decision to increase it to 15 percent last week sparked widespread objections from restaurant owners. In response, the NBR has decided to roll back the increase.

Additionally, VAT officials hinted that the recent hike in VAT on medicines might also be reversed. On January 9, VAT on medicines was raised from 2.4 percent to 3 percent, causing discontent in the healthcare sector. Similarly, the supplementary duty imposed on Internet Service Providers (ISPs) at 10 percent may also be scrapped to alleviate pressure on the tech industry.

The NBR, in its letter to restaurant owners, called for their cooperation in maintaining peace and supporting the government's efforts to increase VAT collection. This decision is expected to provide relief to business owners and ensure a more balanced approach to revenue collection.

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