Dhaka, Feb 5, (V7N) – Bangladesh’s government has moved to ease consumer costs and tighten energy regulation, approving tax relief on liquefied petroleum gas (LPG) and endorsing a new ordinance to combat illegal gas use.

At a weekly meeting chaired by Chief Adviser Professor Muhammad Yunus, the Council of Advisers agreed to exempt the 7.5 percent VAT and 2 percent advance tax previously levied at local production and trader levels. Instead, a single 7.5 percent VAT will apply only at the import stage. Officials said the measure will reduce the overall tax burden and is expected to lower LPG prices in the domestic market.

The council also approved the draft Bangladesh Gas (Amendment) Ordinance-2026, designed to prevent widespread losses from illegal connections and misuse, which cost the sector billions of taka annually.

Press Secretary Shafiqul Alam explained that the ordinance broadens the definition of unlawful gas use, making both unauthorized mainline connections and contractor-assisted misuse punishable offenses. Penalties will now differ for metered and non-metered consumers, while building owners and employees of distribution companies will face accountability for violations.

The amendment also removes the requirement for consumers to seek company approval for load management or meter changes, a step expected to simplify services.

The dual decisions reflect the government’s push to balance affordability with stricter enforcement in Bangladesh’s energy sector.

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