NBR, BPC again in tussle over four oil cos’ Tk 2,604cr dues

Staff Correspondent | Published: 00:05, Jul 20,2018

 
 

A file photo shows a man filling a motorcycle with diesel at a filling station in Dhaka. The National Board of Revenue and the Bangladesh Petroleum Corporation have again engaged in a dispute over longstanding dues as an NBR field office issued fresh notices to BPC’s four oil companies to pay up Tk 2,604 crore immediately. — New Age photo

The National Board of Revenue and Bangladesh Petroleum Corporation have again engaged in a dispute over longstanding dues as an NBR field office issued fresh notices to BPC’s four oil companies to pay up Tk 2,604 crore immediately.
Chittagong Customs Excise and VAT Commissionerate earlier this month asked the companies — Meghna Petroleum Ltd, and Padma Oil Company Ltd, Jamuna Oil Company Ltd and Standard Asiatic Oil Company Ltd — to pay the arrears in value-added tax on sales of refined oil.
BPC, as a parent organisation of the companies, however refused to pay the amount and rather it requested the VAT office to adjust the dues with the refundable amount to the state-owned corporation.
Both sides have been discussing for long to settle the issue through book adjustment method.
NBR officials said they agreed to resolve the disputes through book adjustment method as they could not realise the amount from BPC and its subsidiaries.
Later, NBR came to know that the Office of the Controller General of Accounts did not credit the amount settled through book adjustment to the account of the NBR, its officers said.
They added that by this time BPC took no initiative to clear up the dues through the method.
In this situation, Chittagong VAT office asked the oil companies to pay the arrears, they added.
BPC officials said in June they paid Tk 215 crore to NBR and requested for adjusting the remaining arrears with the amount which BPC paid as VAT and advance trade VAT on import of petroleum oil to the Chittagong Customs House.
But, the field office of NBR declined to do so, they said.
In a letter to the Meghna Petroleum Ltd, Chittagong VAT commissioner Syed Golam Kibria said the company paid the VAT and ATV on import of furnace oil to CCH which was a separate office of NBR.
There was no scope of adjusting the arrears to one office with that to another office, he said.
Meghna petroleum owes Tk 854 crore to Chittagong VAT commissionerate.
Kibria on Thursday told New Age that they made the demand as BPC did not take any initiative to settle the arrears through book adjustment.
Meghna petroleum general manager (accounts and finance) Kazi Manowar Dilder said BPC was looking into the matter and Meghna, as a subsidiary of the BPC, would follow its directives.
BPC director (finance) Md Altaf Hussain Chaudhury told New Age that NBR also owed a huge amount to the corporation which it paid at import stage.
‘We will sit with NBR chairman Md Mosharraf Hossain Bhuiyan after his return from abroad and will want NBR to adjust the amount,’ he said.
Chittagong VAT commissionerate earlier in 2015 detected the VAT evasion by the BPC and its oil companies through paying VAT at lower rate than collected from consumers for supply fuel oils during financial year 2014 and FY 2015.

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