NBR waives import VAT on composite LPG cylinder

Staff Correspondent | Published: 23:00, Jan 09,2017

 
 

The National Board of Revenue has exempted value-added tax on import of composite LPG cylinder following a proposal of the BEXIMCO Group.
The revenue board on Sunday issued a statutory regulatory order waving the importers of the product from paying VAT at the rate of 15 per cent.
The exemption will be applicable for composite LPG (liquefied petroleum gas) cylinder capacity below 5,000 litres up to June 30.
Officials concerned said that BEXIMCO Group had recently sought VAT waiver on import of the product saying that the composite LPG cylinder is environment friendly and safer compared with that of traditional cylinder.
After getting approval of finance minister AMA Muhith, the NBR issued the SRO signed by its chairman and senior secretary to the Internal Resource Division Md Nojibur Rahman.
The officials said that 15 per cent VAT along with 10 per cent customs duty, 5 per cent AIT and 4 per cent advance trade VAT would remain applicable on import of LPG cylinder and containers of iron or steel which are widely used in the country as the NBR did not waive the product from paying VAT to protect local industry.
The local producers of the traditional LPG cylinder, however, enjoy VAT exemption on import of raw materials and different components of the product. They also enjoy VAT exemption at production stage.
The government is encouraging household consumers to use bottled LP gas instead of piped natural gas.
According to media reports, BEXIMCO Group in November last year signed an agreement with Norwegian company Hexagon Ragasco for selling the composite LPG cylinder of the company into the Bangladesh market.
Both parties have targeted to sell 1.4 million cylinders over the four-year period under the agreement.

Want stories like this in your inbox?

Sign up to exclusive daily email

Advertisement

images

 

Advertisement

images