The value-added tax (VAT) on hotels and restaurants will be reinstated to its previous rate of 5%, according to Mohammad Belal Hossain Chowdhury, Member of the National Board of Revenue (NBR) for VAT Policy.
NBR is set to issue the corresponding order on Thursday (16 January), he added.
It comes as part of broader efforts to stimulate the hospitality sector, which has been severely affected by the economic downturn.
Industry stakeholders have long lobbied for a reduction in VAT, arguing that lower taxes could help attract more customers and support the recovery of businesses struggling to stay afloat.
This move follows mounting pressure from restaurant owners, who had threatened to strike indefinitely in response to the increased VAT.
NBR's decision comes less than a week after the interim government issued an ordinance raising VAT and Supplementary Duty on nearly 100 goods and services, including restaurants and non-AC hotels.
VAT on restaurants had been revised to 15% under it.
