The government of Bangladesh has reduced the value-added tax (VAT) on liquefied petroleum gas (LPG), according to a statement issued on February 16. National Board of Revenue (NBR) public relations officer Md. Al Amin Sheikh confirmed that the decision was made to keep LPG prices stable and affordable for both industrial and household users. Previously, LPG was subject to a 7.5 percent VAT at the local production and trading stages and a 2 percent advance tax at import.

Following recommendations from the Ministry of Energy and Mineral Resources and a request from the LPG Operators Association of Bangladesh, the government issued two separate notifications withdrawing the 7.5 percent VAT on local production and trading and the 2 percent advance tax on imports. Instead, a 7.5 percent VAT will now apply only at the import stage until June 30.

According to the NBR, this adjustment will remove VAT from the value added during local production and sales, reducing the overall tax burden on consumers by approximately 20 percent compared to previous levels.