Government Reduces VAT on LPG, Decision Effective Until June 30

To stabilize the supply and price of liquefied petroleum gas (LPG), the government has revised the VAT structure. On Tuesday (February 16), National Board of Revenue Public Relations Officer Md. Al Amin Sheikh confirmed the information to the media.

Under the current system, 7.5 percent value-added tax (VAT) is imposed at the local production and trader level, and 2 percent advance tax at the import stage. According to the new decision, the 7.5 percent VAT at production and trader levels and the 2 percent advance tax at the import stage have been withdrawn until June 30.

The National Board of Revenue implemented the decision through two separate notifications. It stated that the move was taken in response to a request from the LPG Operators Association of Bangladesh and upon recommendation of the Ministry of Power, Energy and Mineral Resources. Under the revised system, 7.5 percent VAT will be imposed at the import stage, but no VAT will apply at the local production and sales levels.

Relevant government sources said that this measure could reduce the overall VAT burden at the consumer level by up to 20 percent when purchasing LPG. This is expected to ease market price pressure and make the fuel more affordable for the general public.