The government has decided to reduce taxes at the import stage to bring down the price of liquefied petroleum gas (LPG).
The 2 percent advance tax previously imposed at import has been waived. At the same time, the 7.5 percent value-added tax (VAT) levied at the production stage has been withdrawn and will now be applied at the import stage.
Sources at the National Board of Revenue (NBR) confirmed the move.
Officials said the decision comes in response to rising international LPG prices, which recently created a supply crunch in the country and pushed consumer prices higher.
LPG sector entrepreneurs had long urged the government to reduce existing duties and taxes.
The new tax structure is expected to slightly lower importers’ costs, which in turn should ease prices for consumers.
A formal notification on the matter is expected soon.
