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Search date: 26-04-2018 Return to current date: Click here

Uniform tariff value for both manufacturers, traders

VAT on LPG


FE Report | April 26, 2018 00:00:00


The National Board of Revenue (NBR) has fixed a uniform tariff value for both traders and manufacturers of Liquefied Petroleum Gas (LPG).

Under the new tariff value, traders will, from now on, require to pay the amount of VAT similar to that of manufacturers.

Earlier, only manufacturers were enjoying tariff value on payment of VAT on LPG while traders had to pay a flat 15 per cent VAT on their sale value.

The VAT wing of the NBR issued a Statutory Regulatory Order (SRO), dated April 9, 2018.

Now, tariff value has also been set at Tk 3.0 per for kilogram of LPG at trading stage.

However, the tariff value will be applicable only on bulk LPG above 45 kg which is mainly used by industrial purpose.

A senior VAT official said due to wide gap of payable VAT between the manufacturers and traders the VAT officials were facing difficulties to realize it.

Traders were facing discriminatory tax measures and were not capable to pay the VAT at high rate as they get a negligible amount of commission about Tk 5.0-10, the VAT official said.

The NBR could not realize the VAT due to high rate of VAT on trading stage compared to that of the manufacturing stage, he added.

VAT collection from LPG will go up as the NBR brought consistency on the VAT rates between traders and manufacturers, he said.

Following proposal of the ministry of power and energy and LPG industry insiders, the NBR reduced the VAT for the product on bulk stage.

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