LOAB demands withdrawal of additional tax on LPG

The LPG Operators Association of Bangladesh (LOAB) has demanded withdrawal of additional tax on LPG.

The organisation raised the demand in a press release sent to the media on Thursday (January 23).

LOAB said that imposing additional tax on an environment-friendly fuel like LPG has severely affected the purchasing power of consumers. This will encourage consumers to reduce the use of LP gas and burn wood, which will cause environmental damage and put public health at risk.

The press release said initially, 15 percent VAT was applicable on the tariff price of LP gas, as a result of which the tariff value of every 12 kg was set at Tk 60 and a total of Tk 9 VAT was paid by a consumer at the rate of 15 percent. Later, a total of 7 percent VAT was imposed – 5 percent VAT at the production/bottling stage and 2 percent at the trader stage – which became an additional tax burden for energy consumers.

Recently, the 2 percent VAT at the trader stage was abolished and the VAT at the production/bottling stage was increased from 5 percent to 7.5 percent. In that case, a consumer has to pay a total of Tk 95 VAT on every 12 kg cylinder, which is not at all affordable for the consumer.

In such a situation, LOAB has called for the withdrawal of the additional tax on LPG and the introduction of VAT deduction on the tariff price as before.

LOAB said LPG is being widely used in Bangladesh as a safe and essential fuel. The number of LPG users across the country is increasing significantly. As an easily available fuel, it is one of the choices of consumers. Not only in Bangladesh, due to its important role in protecting the environment, LPG has become one of the preferred fuels of conscious people worldwide.

The release further said that apart from Bangladesh, governments of various countries around the world are providing various incentives for the use of environmentally friendly LPG. LPG is playing an outstanding role in reducing the use of fossil fuels and carbon emissions in Bangladesh.