They also accused the National Board of Revenue (NBR) and VAT authorities of harassing them.

"We are soon going to launch agitation to save restaurants, fast food shops and bakeries from the clutch of VAT and we will enforce 72-hour strike and if necessary more tougher programmes to realise our demand," said Kamruddin Ahmed Khokon, chief advisor to newly formed Food Merchant Association, an umbrella organisation of five associations.

"We will also stop supply of food. The situation will be so bad that there will be no food even in roadside shops. If necessary, we will stop food supply to hospitals," said Khandaker Ruhul Amin, convener of the alliance.

Bangladesh Restaurant Owners' Association, Bread-biscuit and Confectionary Owners' Association, Sweet Shop Owners' Association, Chinese Restaurant Owners' Association and Fast Food Entrepreneurs Association formed the alliance.

The merchants claimed that at present the number of members of their platform is over 50 thousand. The total number of restaurants across the country is also over 25,000, including 4,000 in Dhaka. Each restaurant employs 30 persons on an average. About one crore people are directly involved with the business of food items, they said.

Leaders of five associations of food and bakery entrepreneurs told the news agency that though the government has imposed 1.5 percent VAT on luxurious goods, it imposed 15 percent VAT on essential items like food.

They alleged that food traders are incurring loss due to payment of 15 percent VAT on its total sale. "Consumers are being exploited due to this increased payment for VAT as they had to bear the burden of additional cost."

Citing examples of India, the leaders said, Indian government has imposed 4 percent VAT on food items.

The association will announce action programmes from a press conference at National Press Club today.