Dhaka, Jan 16 (V7N) — The National Board of Revenue (NBR) has announced that the VAT rate in the hotel and restaurant sector will be rolled back to 5%, reversing the earlier decision to increase it to 15%. An official order in this regard will be issued later today.

NBR Member (VAT Policy) Mohammad Belal Hossain Chowdhury confirmed the decision on Thursday morning, stating that the previous ordinance issued on January 9, which raised the VAT rate to 15%, will no longer be enforced.

The reversal comes in response to widespread criticism and protests from various quarters, including the Bangladesh Restaurant Owners Association. The association had planned to hold a human chain protest across the country on January 16, demanding a reduction in the increased VAT rate.

In a letter issued on Wednesday by First Secretary (VAT Policy) Mashiur Rahman, the NBR acknowledged the concerns raised by the association and confirmed its decision to reconsider the VAT rate. The NBR has also sought the cooperation of restaurant owners in expanding VAT coverage and ensuring smooth revenue collection.

This decision is expected to provide relief to the hospitality sector and consumers alike while maintaining peace and order within the industry.

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