The National Board of Revenue has said that consumers would have to pay 15 per cent value-added tax on liquefied natural gas as the VAT authority did not waive the tax on supply of the item.
VAT wing of NBR on Sunday issued a clarification to Bangladesh Petroleum Corporation, Bangladesh Energy Regulatory Commission and field-level VAT offices as a recent order about applicability of VAT on LNG supply created confusion among the agencies.
NBR on October 3 withdrew 93.24 per cent supplementary duty on production stage of LNG, 15 per cent VAT on trading stage and 5 per cent advance trade VAT to keep the high-priced imported product affordable at consumer level.
Earlier on September 26, customs wing of NBR also waived 5 per cent customs duty on import of LNG with retrospective effect from September 18 as the Petrobangla started supply of imported LNG blended with local natural gas through national pipeline.
Officials said that the confusion created among the agencies mainly due to VAT exemption on business stage.
BERC has considered setting the imported LNG price assuming that VAT will also not be applicable on supply stage, they said.
High officials of both BERC and Petrobangla have communicated with NBR over the issue, they added.
NBR issued the clarification to remove the ambiguity, said a senior NBR official.
He said that exemption on business stage would not be applicable for the government gas companies as the provision was only for private businesses though currently there was no private business of LNG.
Currently, 15 per cent VAT and 2 per cent advance income tax on import of LNG and 15 per cent VAT on supply of LNG is remained applicable after the exemption of other taxes.
VAT wing of NBR on Sunday issued a clarification to Bangladesh Petroleum Corporation, Bangladesh Energy Regulatory Commission and field-level VAT offices as a recent order about applicability of VAT on LNG supply created confusion among the agencies.
NBR on October 3 withdrew 93.24 per cent supplementary duty on production stage of LNG, 15 per cent VAT on trading stage and 5 per cent advance trade VAT to keep the high-priced imported product affordable at consumer level.
Earlier on September 26, customs wing of NBR also waived 5 per cent customs duty on import of LNG with retrospective effect from September 18 as the Petrobangla started supply of imported LNG blended with local natural gas through national pipeline.
Officials said that the confusion created among the agencies mainly due to VAT exemption on business stage.
BERC has considered setting the imported LNG price assuming that VAT will also not be applicable on supply stage, they said.
High officials of both BERC and Petrobangla have communicated with NBR over the issue, they added.
NBR issued the clarification to remove the ambiguity, said a senior NBR official.
He said that exemption on business stage would not be applicable for the government gas companies as the provision was only for private businesses though currently there was no private business of LNG.
Currently, 15 per cent VAT and 2 per cent advance income tax on import of LNG and 15 per cent VAT on supply of LNG is remained applicable after the exemption of other taxes.
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