Dhaka, Feb. 17 -- The government has exempted local production and trading of liquefied petroleum gas (LPG) from value added tax and customs duty in a bid to stabilise prices.

The National Board of Revenue (NBR) said in a media statement on Monday that advance tax at the import stage has also been withdrawn, replaced with a 7.5 percent VAT.

The Advisory Council approved the exemption on Feb 5 after LPG cylinder prices in the market doubled the government‑set rate.

Previously, a 7.5 percent VAT was applied at local production and trading stages, along with a 2 percent advance tax at import.

These have now been lifted until Jun 30.

The NBR said the new arrangement will reduce the VAT burden on consumers by around 20 percent compa...