NBR wants cash-starved BPC to pay arrear duties

FE Team | Published: October 22, 2007 00:00:00 | Updated: February 01, 2018 00:00:00

Doulot Akter Mala
The National Board of Revenue (NBR) has taken a fresh move to realise outstanding customs duties worth Tk 12.42 billion from the state-owned Bangladesh Petroleum Corporation (BPC).
The NBR has sent a letter to the energy ministry seeking to realise the huge accumulated dues of the customs department as import duty on fuel, sources said.
Against the backdrop of revenue target shortfall in the first quarter of the current fiscal, the board has been forced to request the fund-starved BPC for payment of the arrear, sources added.
In a reverse move, the ministry has also claimed some overdue arrear lying with the NBR on account of excess payment of duty and tax, they said.
The board has already asked the energy ministry to calculate its dues with the revenue board.
According to an estimate, the BPC has dues worth about Tk 60 million with the income tax department, Tk 520 million with the duty exemption and drawback office (DEDO) and Tk 320 million with the Chittagong customs house.
"It will still leave a large amount of outstanding NBR dues after deduction from that of the BPC's. The board will sit at a meeting with the high-ups of the BPC in this connection," an NBR official source said.
On the other hand, the BPC has been facing financial constraints due to skyrocketing price of fuel in the international market.
Last week, the international market rate for per barrel of crude oil was US$ 88 and refined $90.
The BPC has been supplying the fuel at a lower rate than that of import price, which is the main reason for its accumulated losses, according to the energy division sources.
The BPC has already sent a letter to the finance ministry seeking an annual allocation of fund worth Tk 28 billion to recoup the losses, caused by surging fuel prices, an energy division source said.
The BPC will continue to incur losses until readjustment of the fuel prices in line with the international market rate, he added.
Last year, the BPC's per month revenue deficit was Tk 2.0 billion that increased to Tk 2.8 billion a month due to the rise in fuel prices in the international market.
The BPC suffered a loss worth around Tk 1.60 billion in June, Tk 2.17 billion in July and Tk 2.40 billion in August last as the oil prices continued to soar every month.
The government is likely to take a decision on upward adjustment of fuel prices within a short time, the energy division source hinted.