NBR proposes single 10% VAT on LPG for simplification

Dec 18, 2025
Business

Photo: LPG cylinder (Collected)

Staff Report: PNN

The National Board of Revenue (NBR) has proposed a single 10% VAT on imported LPG (Liquefied Petroleum Gas) and the removal of multiple VAT and Advance Tax layers at the local production, trading, and business levels.

Officials stated the reform aims to increase transparency, reduce revenue leakage, and simplify the system. Current monthly LPG demand in Bangladesh is 100,000–150,000 tons, with 98% imported. 81% is used domestically for cooking, and 19% for industrial, commercial, and transport purposes. The new VAT system will not raise consumer prices.