Interim government grants VAT, tax exemptions to ease local LPG supply

The Advisor Council greenlights a 7.5 percent VAT on imports

In a bid to maintain a steady supply of liquefied petroleum gas (LPG), the Advisory Council has approved VAT and tax exemptions at the local production and trader level.

The decisions came at a meeting of the Advisory Council at the Chief Advisor’s Office (CAO) in Dhaka’s Tejgaon on Thursday, led by Chief Advisor Muhammad Yunus.

After the meeting, Press Secretary Shafiqul Alam said: “A 7.5 percent VAT and 2 percent advance tax exemption have been granted at the local production and trader level.

“In addition, a proposal to impose a 7.5 percent VAT on imports has been approved.

“As a result, the overall tax burden on LPG will reduce slightly, which should bring prices down in the local market.”

Earlier in January, supply disruptions, allegations of manipulation, and government operations had prompted traders to halt LPG cylinder sales.

To restore normal supply, the Energy and Mineral Resources Division had recommended a 10 percent import VAT and local-level tax exemptions to the National Board of Revenue (NBR).