The Bangladesh Caterer’s Association UK Ltd has written to Chancellor Rishi Sunak to reduce the value-added tax (VAT) for the British Curry restaurant industry from the current and steep 20% to a far more realistic 5% for at least one year.
In a letter signed by M A Munim, President and Mitu Choudhury Secretary General, of BCA, wrote, “This will allow us to recoup the devastating losses caused by the lockdown and social distancing introduced by the government to combat the coronavirus. The hospitality trade has been among the worst-hit of all sectors of the economy by the restrictions that were imposed in March to help prevent the virus spreading.
“The hospitality sector is Britain's fifth biggest industry and the British curry industry has until this Covid-19 pandemic began, annually contributed approximately £4.2 billion to the economy. It will be tough for us to continue contributing to Britain’s economy, unless we have this support that we are requesting. Please throw us this lifeline! We are an industry on its knees.
“Globally the world is heading towards a second recession and this VAT relief will not only help our sector but will be a boost to the whole of the hospitality sector and to all small British businesses who are struggling.
“We represent about 12,000 curry houses and we know from our members, that some of them will not be able to reopen when the time comes, which will further leave our high streets beleaguered, local communities poorer and unemployment higher. Especially, as a sector we employ up to 100,000 workers.
“What we are asking for is possible as Germany has already reduced its VAT for its hospitality industry from 19% to 7%. A cut in VAT rates makes business sense, it will help to restart our economy and importantly will encourage us all to start spending again.”
