Restaurant owners again hit by spiralling commodity prices
With the hike in commodity prices, and increase in labour wage and daily expenses, the country's restaurant business is going to face another blow soon as it had just started recovering from the Covid-19 shock that lasted long.
In this context, restaurant business leaders Saturday pressed home several demands including the increase in food price, supply essentials through TCB and reduction of the value-added tax (VAT) for their survival.
They made the demands at the 34th meeting of the central executive committee of the restaurant owners association at the Institution of Diploma Engineers Bangladesh in the capital.
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Secretary-General of the association Imran Hasan said that they were just trying to make up for the losses incurred during Covid-19 but it has been hampered again by the spiralling commodity prices.
"We are incurring losses instead of making a profit by selling prepared foods now," he said.
He said that food prices were not increased in the restaurants despite a price hike of essentials. Moreover, the wages and expenses have jumped manifolds. No worker is available at low wages, he added.
"We have heard that the price of gas and water will be increased too. There is no way out for us but to be bankrupt and many are shutting down their business," said Imran.
He suggested the supply of essential commodities through the Trading Corporation of Bangladesh (TCB) which would help many businesses as their expenses will reduce to a great extent.
Imran Hasan alleged that the reduction of VAT last year was a mere eyewash as the restaurant businesses do not get a refund. This has prolonged the problems, he added.
"The VAT registration system has not been introduced across the country. Some businesses are paying while some are not which has created unequal competition," he said.
Imran Hasan demanded reducing the VAT rate to 3% and tax rate to 0.5% in the next budget at those restaurants where working people dine.
He also criticised the mobile court drive conducted against the restaurants.
"You (the government) know that we work with unskilled human resources. Firstly, you provide us with training on how to present 100% safe food," Imran said.
