Parlour operators seek a reduction in value-added tax (VAT) on services as the beauty salons have become a casualty of the Covid-19 pandemic, source say.
The Beauty Service Owners Association of Bangladesh recently sent a letter to commerce ministry with a request for action to save this potential sector.
Beauty service entrepreneurs have gone to the wall. It is hard for the industry to survive, it claims.
"Currently, we have to pay 15-per cent VAT on our total service value. We have requested the government to reduce it to 5.0 per cent," a parlour operator says.
Revenue collection will get a boost and the sector may be saved from this disastrous situation if the government reduces VAT for the sector, he adds.
Besides, the current fiscal budget has imposed 15-per cent tax on the import of beauty products. For this, prices of beauty goods have been increased.
According to the association, cultural functions like marriage ceremony have reduced significantly and the arrival of customers has also dropped severely.
The current VAT management and the ongoing Covid-19 have hit the industry across the country, it says.
The owners claim that many beauty firms have already put up the shutters for VAT increases and the pandemic.
An entrepreneur needs a large floor at any important city place to run this business. S/he has to count a bid amount as rental per month, they say.
Besides, the burden of electricity, gas, WASA and internet bills is there.
Small and large-size beauty parlours, salons and spas are currently in operation across all the 64 districts.
There are 0.3 million and 0.5-million VAT-registered parlours and gent's parlours and salons respectively in Bangladesh, reads the letter.
An estimated 1.0-million women, including owners and service providers, are involved in the ladies' parlour, salon and spa business, it cites.
