VAT on meals at air conditioned restaurants to decrease

At present, it costs 10 per cent more for eating meals at restaurants with air conditioning facilities.

Finance minister AHM Mustafa Kamal has taken initiative to reduce this pressure.

He proposed this in his budget speech at the Jatiya Sangsad today (Thursday). The finance minister started his budget around 3pm on Thursday. It was his fourth budget speech in the parliament.

He has proposed to decrease the Value Added Tax (VAT) on the bill of meals at air conditioned restaurants from 10 per cent to 5 per cent in the proposed budget of 2022-23 fiscal year.

However, the minister proposed to keep the VAT on enjoying meals at non air conditioned restaurants at 5 per cent like before.

During his budget speech the finance minister said, “I propose 5 per cent VAT on both AC and non-AC restaurants (except restaurants in hotels with 3 or more star, and restaurants, where alcohol is served) instead of 10 per cent VAT on AC restaurant and 5 percent VAT on non-AC restaurant.”

The total size of the proposed budget stood at Tk 6,780 billion. The government expects to bag an earning of Tk 4,362 billion in the year while the remaining Tk 2,417 billion has been shown as deficit in the budget.

The government would collect loans from domestic and foreign sources to make up the deficit.