The LPG Operators Association of Bangladesh (LOAB) has strongly opposed the government’s proposal to increase Value Added Tax (VAT) on Liquefied Petroleum Gas (LPG) cylinders from 7.5% to 10%.
They warned that the move could severely destabilize the country’s energy security and hurt millions of low-income families.
LOAB President Muhammed Amirul Haque in a recent statement said the proposed tax hike poses a ‘serious threat’ at a time when domestic natural gas reserves are dwindling and new household gas connections have already been suspended.
“LPG is the primary alternative fuel for millions of families. Increasing VAT will make it less affordable and limit access for those who need it the most,” he said.
According to LOAB, more than 1.5 million tons of LPG are imported annually by the private sector with 97% of it used for cooking.
The usage is equivalent to approximately 2 million cubic feet per day (MMCFD) of natural gas and supports over 40 lakh households across the country.
