NBR restructures VAT burden on LPG

The National Board of Revenue (NBR) has restructured the VAT on liquefied petroleum gas (LPG) to reduce the tax burden on consumers and stabilise the domestic fuel market.

The NBR has withdrawn the 7.5 percent VAT at the production and trading stages of LPG as well as the 2 percent advance tax at import.

Instead, it has imposed 7.5 percent VAT at the import stage of LPG, according to two separate notifications issued on Monday.

As a result of the restructuring, VAT on LPG will be applicable only at the import stage.

The NBR said the VAT burden on consumers will decline by one-fifth due to the restructuring.

The revenue authority said it has taken the decision in the public interest to stabilise the market and keep LPG — widely used in households and industry — within consumers’ purchasing power.

The new measures will remain in force until June 30, 2026.

The revenue administration’s move came following an application from the LPG Operators Association of Bangladesh and recommendations from the Ministry of Power, Energy and Mineral Resources.