The National Board of Revenue (NBR) is set to revise the value-added tax (VAT) on restaurants, reducing it from the standard rate of 15 percent.

The tax administration informed the Bangladesh Restaurant Owners Association of the decision in a letter, though it did not specify the new rate.

The NBR stated that the decision was made after reviewing a letter sent earlier by the association.

"Under the circumstances, your cooperation is sought for increased revenue collection and maintaining peace and stability," the letter said.

This move follows mounting pressure from restaurant owners, who had threatened to strike indefinitely in response to the increased VAT.

The 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.

Previously, the VAT rate for restaurants was set at 5 percent.