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Biman owes Tk 20.27b to CAAB

Rezaul Karim | October 06, 2016 00:00:00


Non-payment of over Tk 22.27 billion in the form of different charges by the national flag carrier and another private airline has put the civil aviation authority in trouble, officials said.

Biman Bangladesh Airlines and United Airways owe the money to the Civil Aviation Authority, Bangladesh (CAAB) in the form of charges for landing, parking, housing of aircraft, route navigation and embarkation fees, they said.

Different non-aeronautical charges also remain outstanding with the airlines, they added.

Until August last, Biman owed more than Tk 20.27 billion to CAAB. The dues with United Airways are more than Tk 2.0 billion, a CAAB high official said.

Biman and some other private airlines are paying a small amount of their outstanding dues, he said, adding that at present, Regent Airways is paying its dues as per the directive of the High Court.  

Biman paid over Tk 120 million and Tk 250 million in August and September last, the official said.

The main source of income of the aviation authority is aeronautical and non-aeronautical charges which are received from domestic and international airlines, sources said.

The CAAB meets its revenue expenses and make different payments along with financing its development projects from earnings received in this way. The CAAB is facing financial problem carrying out its development activities due to non-payment of aeronautical and non-aeronautical charges by some domestic airlines, they said.  

"Payment of income tax to the government, financing different development projects, maintenance and overhauling activities of the CAAB are being hampered due to delay in payments from the state-run airline and other private domestic airlines," CAAB Member (Finance) Mizanur Rahman told the FE.

"Money earned as different charges is the main source of CAAB's income and expenditures for the purposes mentioned above are met from that income. As a result, we face liquidity problem implementing different mega projects when some airlines don't pay their outstanding charges in time," he added.

There is no problem carrying out the activities of the CAAB, he mentioned.

The government brought the CAAB under corporate tax net from the fiscal year (FY) 2011-12. The CAAB defaulted on the payment of about Tk 7.0 billion in income tax until FY 2014-15, a high official of the CAAB said.

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