Tuesday, 26 September, 2023

LPG station owners want VAT cuts on green fuel

  • Staff Correspondent
  • 31st May, 2023 09:12:06 PM
  • Print news
LPG station owners want VAT cuts on green fuel

Popular News

Bangladesh LPG Autogas Station Owners Association demanded a business-friendly policy support in the upcoming budget to help flourish the auto gas industry as a green fuel sector which has an investment of Tk 10 billion.

The business leaders urged the National Board of Revenue (NBR) to review 7.5 percent value added tax (VAT) on auto gas as the government pledged to promote the environment-friendly fuel like liquefied petroleum gas (LPG).
“The government is talking about promoting environment-friendly energy. But the autogas entrepreneurs are experiencing bureaucratic complications to get licenses for LPG stations. We need tax and other policy support as a new industry,” Mohammad Serajul Mawla, president of the association, told at an international seminar on the auto gas industry held in Dhaka. 

The two-day Asia Regional Conference of the World LPG Association ended at the International Convention City Bashundhara (ICCB) in the capital on Wednesday.

On the first day, Mohammad Serajul Mawla gave a presentation on the present and future of the LPG Autogas sector.

Mawla said that there were 800 auto gas stations in the country whose monthly consumption was about 12,000 tonnes. 

According to the trade body, another 200 new stations are currently under construction.

President of the association said that despite the shortage of natural gas in Bangladesh, it was being used as CNG (converted natural gas) for transportation which had no economic role.

“Using LPG in the transport sector is on the one hand environment friendly while it is possible to reduce the wastage of natural gas and make value addition to the industry,” Mawla added.

At present, LPG is used as fuel in around 1 lakh private cars, microbuses and three-wheelers across the country.

“Government and private sector initiatives are needed to expand the LPG autogas sector as an environment-friendly fuel. And in this regard the Autogas Station Owners’ Association wants to work together with the government,” Mawla observed. 

Among others, World LPG Association managing director James Rockall, director David Taylor and Bangladesh Autogas Association Secretary General Hasin Parvez were also present.