The interim government has proposed to reduce VAT on liquid petroleum gas (LPG) imports from 15 percent to 10 percent, and to lower the VAT on domestic production to 7.5 percent.
The move was announced via a notification from the Ministry of Power and Energy on Thursday. A letter in this regard has been sent to National Board of Revenue (NBR).
The government’s Energy and Mineral Resources Division has taken this initiative based on discussions with the LPG Operators Association of Bangladesh. The goal is to reduce gas prices at the consumer level and maintain stable fuel supply in the market.
Sources indicated that the proposed tariff restructuring could have a direct positive impact on the cost of living for the country’s general consumers.
Earlier in the day, LPG Traders Cooperative Society Ltd enforced a nationwide suspension of LPG supply and sales until its demands are met.
Traders issued the ultimatum at the Jatiya Press Club on Wednesday. They warned that if their demands are not met within 24 hours, LPG cylinder sales will be stopped. A formal notice of suspension was issued later in the evening.
