BPC seeks duty waiver on fuel oil import

Staff Correspondent | Published: 00:01, Nov 20,2016

 
 

Bangladesh Petroleum Corporation has sought exemption from paying duties and value added tax on import of crude oil by which the corporation produces furnace oil and sale the item on the local market.
Energy and Resources Division, the controlling authorities of the corporation, in last week of October forwarded a letter of the BPC to the National Board of Revenue for taking necessary steps in this connection.
Eastern Refinery Ltd produces furnace oil from one-third of total imported crude oil, the BPC said adding that ERL-produced furnace oil is used in power generation.
In the letter signed by BPC chairman Mahmud Reza Khan, it said that import of furnace oil by the public and private power generation plants had been enjoying duty exemption since 2011.
But the corporation cannot avail the facility due to the conditions of the relevant statutory regulatory order on exemption, it said.
As the furnace oil import by power plants enjoys duty exemption, the BPC also can get the facility for the portion of crude oil used in furnace oil production for power generation, BPC argued.
The corporation also sought VAT exemption on local sale of furnace oil produced by the ERL, a subsidiary of the corporation.
Earlier, the BPC told NBR that it should refund Tk 3,151 crore earlier paid as duty and VAT on import of crude oil for power generation purpose since 2011 in line with the benefit given to the power plants.
It asked NBR to adjust Tk 2,020.97 crore as arrear VAT demanded by Chittagong VAT Commissionerate and refund the rest of the amount to the BPC.
But, the revenue board turned down the plea saying it is not possible to refund the paid duties as there is no scope of giving financial benefits to any organisation or person with retrospective effect.
Energy and Mineral Resources Division on November 7, however, requested the NBR to refund BPC Tk 2,631 crore after adjusting the arrear VAT.
Officials concerned, however, said that the revenue board was considering to provide the BPC with the duty exemption benefit for import of furnace oil.

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