Petrobangla pays Tk5,000cr in tax arrears
The amount was arranged thru interest-free long-term loan
The Bangladesh Oil, Gas, and Mineral Resources Corporation (Petrobangla) paid Tk5,000 crore in arrears for value added tax (VAT) on Monday and Tuesday.
However, the total amount owed by this organisation to the Ministry of Energy and Mineral Resources was Tk37,549 crore till March of this year, sources from the government-owned company said.
They said Petrobangla has faced financial challenges in meeting its fuel import costs, resulting in long-standing non-payment of duties, taxes, and income tax to the National Board of Revenue (NBR).
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The situation worsened due to the increased dollar exchange rate and rising LNG prices, they added.
A senior official from Petrobangla, wishing anonymity, said they decided to settle their dues by securing interest-free long-term loans. The loan has a repayment plan spanning 15 years of grace period and a total repayment period of 20 years.
Under this arrangement, Tk5,000 crore in VAT arrears has been paid to the Large Taxpayers Unit (LTU)added the official.
Before clearing the VAT arrears, Petrobangla's outstanding taxes amounted to Tk22,584 crore, with additional dues of Tk14,965 crore in income tax and import duties, according to NBR data.
Discussions between the finance ministry and Petrobangla had been ongoing for a while, considering options like book adjustments for debt settlement. However, a decision was made last May to make a partial cash payment towards the arrears.
Besides Petrobangla, the Bangladesh Petroleum Corporation (BPC) and its affiliated marketing companies collectively owe about Tk17,226 crore in arrears.
Specifically, BPC owes Tk6,899 crore in income tax, VAT, and duties. Other entities with outstanding dues include Titas Gas Transmission and Distribution (Tk2,284 crore), Padma Oil Company (Tk2,145 crore), Sylhet Gas Fields Ltd (Tk1,735 crore), and Meghna Petroleum Limited (Tk1,028 crore).
