Four state-owned gas companies owe Tk. 223.58 billion to the government in unpaid value added tax (VAT) and supplementary duty (SD) and cumulative interest thereof.
The companies concerned collected tax and duty from their respective subscribers but defaulted on paying the same to the government.
The wilful defaulters are Titas Gas Transmission and Distribution Company Limited, Jalalabad Gas Transmission and Distribution System Limited, Bakhrabad Gas Distribution Company Limited and Karnaphuli Gas Transmission and Distribution Company.
The government is now making a coordinated move to recover the hefty amount of tax revenue stuck up with the gas companies.
An inter-agency panel has been formed to deal with the matter following a row over the payment of such a large amount of government revenue, officials said.
As per the move, the government has decided to form a five-member committee. The secretary of power division will be convener of the committee.
Members will be drawn from energy and mineral resources division, finance division, and chairmen of Petrobangla and the National Board of Revenue (NBR).
An informal meeting was held with the finance minister on March 8 last to dwell on the matter of tax- dodging by the government-run gas companies.
Dr Tawfiq-E-Elahi Chowdhury, energy advisor to the Prime Minister, the NBR chairman, the member concerned of the NBR, the additional secretary of the energy and mineral resources division and representative from the Petrobangla were present at the meeting.
They decided to form the committee to remove the complexities involved in the payment of overdue VAT and SD, the sources said.
Senior secretary Mahbub Ahmed recently sent a summary to the finance minister for approving the proposed committee and its terms of reference (ToR).
According to the modus operandi laid down in the ToR, the committee will examine and audit matters related to the issue.
Agreed demands of the NBR and the gas companies will be ascertained. Finally, the committee will submit a report to the government by March 25 with recommendations for resolving the inter-agency dispute.
Earlier, the finance minister had written to the PM's energy adviser on a note of hope that the adviser would take initiative personally to resolve the issue.
Meanwhile, the NBR has issued show-cause notices on the four state-run gas companies under Petrobangla to explain their position, a high official of the NBR said.
But an official concerned declined to say what reply did come from the four gas-distributions companies, who took the tax from the clients but didn't deposit with the government exchequer.
The gas companies collected VAT and SD worth Tk 132.78 billion from the clients from fiscal year 2009-10 to January 2015 but did not deposit the money with the government treasury.
Some Tk 90.80 billion stood as cumulative interest on VAT and SD for non-payment in right time as per the VAT law 1991, section 37(3), according to NBR data.
Talking to the FE, NBR Chairman Md Nazibur Rahman said, "Large Tax Payer Unit (LTU) of the NBR thinks that a large chunk of VAT/SD remained pending with the four gas-distribution companies. As such, the NBR has demanded government's due money."
The board chief informed that a committee was formed last week to resolve the issue. The committee will submit a report with recommendations. Then the NBR will take next course of action about the arrear amount.
On the other hand, M Rafiqul Islam, additional secretary of the ministry of power, energy and mineral resources, told the FE Sunday: "The four gas companies presented misinformation on VAT and SD unintentionally as the NBR has demanded the amount."
As a result, he said, a complexity has been created in this connection.
Commissioner for the LTU of the NBR Begum Shahnaz Parveen wouldn't make any comment in this matter.
Petrobangla markets gas to various customers through its marketing outfits. The companies collect VAT and SD with the prices of gas from the clients, according to the petroleum corporation.
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