The Bangladesh government has decided to reduce value-added tax (VAT) on liquefied petroleum (LPG) gas, aiming to bring down its market price. The decision was made on Thursday, February 5, during an advisory council meeting chaired by Chief Adviser Professor Muhammad Yunus. Chief Adviser’s Press Secretary Shafiqul Alam announced the decision at a press briefing held at the Foreign Service Academy in Dhaka.

According to Shafiqul Alam, the council approved a proposal to exempt the existing 7.5 percent VAT and 2 percent advance tax on local production and trading of LPG, while imposing a 7.5 percent VAT at the import stage. He stated that this adjustment would reduce the overall tax burden on LPG and consequently lower its retail price in the domestic market.

The government expects that the revised VAT structure will ease consumer costs and stabilize LPG prices across the country, providing some relief to households and businesses dependent on the fuel.