Online VAT submission failing to stop ‘negotiations’ with NBR officials, hoteliers say 

Hotel and restaurant owners have said they still need to visit VAT offices and "negotiate" with officials, despite the National Board of Revenue (NBR) introducing the online VAT return submission system. 

The allegation was raised during a pre-budget meeting held today at the NBR headquarters.

Khaled Ur Rahman, former president of the Bangladesh International Hotel Association, said, "VAT officers treat us like thieves, even though we want to help the government collect revenue. Their behaviour should be professional."

Imran Hassan, secretary general of the Bangladesh Restaurant Owners Association, said many hotels, restaurants, and street food vendors remain outside the VAT net, creating unfair competition for compliant businesses. 

He alleged that large, unregistered businesses evade VAT, sometimes with officials benefiting personally. "A well-known restaurant in Uttara sells over 1,000 kilograms of beef daily but remains outside VAT registration. Officers take money from them." 

The NBR chairman, presiding over the meeting, rejected claims that the online system is ineffective, stating that once VAT returns are submitted online, visiting offices is unnecessary. He instructed officials to behave professionally, but also questioned whether businesses themselves are evading VAT. 

Sharing his own experience, he said he bought sweets twice from the Dhanmondi outlet of Noni Sweets without receiving VAT receipts. When he asked, the staff claimed their EFD machine was out of order. Noni Gopal Ghosh, the owner, was present at the meeting.

The meeting also saw industry requests to reduce import taxes on alcohol to boost tourism, lower minimum taxes on beverages, and withdraw supplementary duty on bottled water. Representatives from 10 organisations shared their proposals during the session. 

In another development, officials from the National Board of Revenue (NBR) have indicated that the 7.5% advance tax on newsprint imports for the newspaper industry may be withdrawn. 

A senior official told The Business Standard the proposal was presented to the finance minister during a pre-budget meeting yesterday, and the minister responded positively. 

The move follows a request by the Newspaper Owners' Association of Bangladesh (NOAB) to reduce or remove import duties and taxes on newsprint. Although the tax is refundable later, industry representatives have long raised concerns over the complex refund process.