The National Board of Revenue (NBR) has decided to reduce VAT in the hotel and restaurant sector from the previous 15 percent to 5 percent.

NBR Member (VAT Policy) Mohammad Belal Hossain Chowdhury confirmed the matter on Thursday (January 16).

Earlier on Wednesday (January 15), the National Board of Revenue (NBR) decided to reconsider the VAT rate for restaurants. A letter from the organization said that the National Board of Revenue has seriously reviewed the letter sent by the Bangladesh Restaurant Owners Association and has decided to reconsider the VAT rate in the restaurant sector. In this situation, the NBR has sought the association's special cooperation in increasing revenue and maintaining peace and order, including the scope of VAT.

On January 9, new VAT was imposed on hundreds of goods and services at different rates. At that time, the VAT on restaurants was increased from 5 percent to 15 percent.