Chief Adviser Professor Muhammad Yunus today chaired the meeting of the Council of Advisers at the Chief Adviser's Office. Photo: PID

DHAKA, Feb 5, 2026 (BSS) - The government today approved a proposal to exempt the 7.5 percent VAT and 2 percent advance tax imposed on liquefied petroleum gas (LPG) at the local production and trader levels while imposing only a 7.5 percent VAT at the import stage.

The Council of Advisers today approved the proposal at its weekly meeting at the Chief Adviser's Office (CAO) in the city with Chief Adviser Professor Muhammad Yunus in the chair.
 
Later, Chief Adviser's Press Secretary Shafiqul Alam disclosed the matter at a briefing at the Foreign Service Academy here this afternoon.

As a result of this decision, he said the overall tax burden on LPG will reduce, which is expected to lead to a further decline in LP gas prices in the local market.
 
Besides, the advisory council also gave approval to the draft of the Bangladesh Gas (Amendment) Ordinance-2026, aimed at preventing illegal gas connections and theft.

Shafiqul Alam said that illegal gas connections and misuse cause losses amounting to thousands of crores of taka every year.

To prevent such losses, he said, the amended ordinance has expanded the definition of illegal gas use. 

Along with illegal connections on the main line, unlawful gas use with the assistance of contractors or others has also been included as a punishable offense in the ordinance, the press secretary said.

Under the amended law, offenses and penalties for metered and non-metered consumers have been determined separately. Responsibilities and punishments for building or flat owners and concerned employees of gas distribution companies have also been included.

Shafiqul Alam said that until now, after obtaining a gas connection, consumers had to depend on the permission of gas distribution companies for load management or meter changes. 

Under the new ordinance, this requirement has been withdrawn, which will make services easier for consumers.