Orion seeks VAT waiver on LPG cylinder import

Orion Gas Limited, a subsidiary of Orion group, has sought an exemption from VAT and advance trade VAT (ATV) on the import of liquefied petroleum gas (LPG) cylinder. Officials of the Finance Division informed that the summary of the request has already been placed before Finance Minister AMA Muhith. Earlier, the National Board of Revenue (NBR) proposed that the 15% VAT and 4 % ATV would remain applicable on the import of LPG cylinders and containers of iron or steel which are widely used in the country. The NBR proposed not to waive the VAT exemption on the import to protect the local industry. On the other hand, the tenure of 15% VAT waiver for local production of LPG cylinder has been extended up to 2019. An empty 12kg LPG cylinder in the local market sells for Tk2,200-2,550, whereas the price of an empty 14.5 kg LPG cylinder in neighbouring India is Rs446.5 (Tk567). Earlier in January this year, the NBR exempted VAT on the import of composite LPG cylinder following a proposal from Beximco Group.