Petroleum tanker owners protest hike in VAT rate

Petroleum tanker owners have protested the government decision of raising value added tax on transportation of petroleum products.

In the proposed budget for fiscal 2016-2017, the government has increased the rate of VAT to 4.5 percent from 2.25 percent now.

The tanker owners, who supply petroleum products to oil depots and power projects across the country, will fall in trouble if the VAT is raised, according to a statement of Bangladesh Petroleum Tanker Owners' Association.

As most of the tankers were built with bank loans, many operators have become defaulters due to dull business amid competition and falling oil prices in the global market, it said. The hike in the VAT rate will push them towards the verge of collapse, said KM Zaman, president of the association.