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Dhaka Monday,  Apr 22, 2019

BPC seeks tax waiver on Fuel for power plants

Bangladesh Petroleum Corporation (BPC) has sought tax and VAT waiver for importing high-speed furnace oil for feeding power plants, aiming to make the corporation profitable.
The request was made at an inter-ministerial meeting held at the Energy and Mineral Resources Division (EMRD) on 19th February with secretary Md Mozammel Huque Khan in the chair. As per the advise of the NBR representatives, the EMRD will send an official letter seeking withdrawal of tax and vat immediately, official concerned said.
The BPC is now paying Tk 7.65 for importing per litre of HFO, even the government exempts tax and VAT on import of the item for electricity generation.
EMRD officials said that the National Board of Revenue (NBR) had withdrawn all taxes and duties on heavy fuel oil (HFO) imported by private power plants after an order from the Finance Ministry.
The NBR imposed tax and duties on fuel oil imports by the BPC on February 14, 2011 ignoring an office order of the finance ministry asking the tax department withdraw tax and duties on imported fuel by the corporation.
The EMRD in 2012 sought intervention of the Finance Division in withdrawal of tax and other duty on imports of furnace oil by the BPC so that the corporation could reduce subsidy to half on fuel imports for supplying to the power plants. But they are yet to respond, the official said.

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