Top officials of privately-owned LPG companies are worried that if the 15% VAT rate is imposed on liquefied petroleum gas (LPG), sales of LPG cylinders will go down and LPG prices will go up, affecting both the companies and the consumers. Currently, there is no VAT on the import of LPG, but there is a 15% VAT on the tariff value, which is quite low, a source in the National Board of Revenue (NBR) told the Dhaka Tribune. However, if the Value-Added Tax (VAT) and Supplementary Duty, 2012 comes into effect on July 1, a uniform 15% VAT will be imposed on the LPG products, cancelling the existing system, he added. However, users complained that BPC cylinders are rarely available in the market, which forces them to avail the cylinders produced by private companies. Meanwhile, an NBR official said the market of LPG cylinders would remain stable even after the new VAT law is implemented if the government ensured stronger monitoring of the market.

Source: Dhaka Tribune June 20, 2017 15:11 UTC