PDB seeks Tk 718cr tax waiver | 2019-06-23 | daily-sun.com

PDB seeks Tk 718cr tax waiver

Shamim Jahangir

23 June, 2019 12:00 AM printer

Bangladesh Power Development Board (BPDB) has sought a waiver of outstanding tax at source of Tk 718.06 crore against electricity generation in state-owned power generation companies in last four years.

The state-run power distributor said the waiver of the tax will help stabilise power tariff and power generation cost.

The BPDB sent a letter to the National Board of Revenue (NBR) in this regard earlier month. In April, NBR asked the BPDB to pay Tk 1088.54 crore in outstanding tax.

Of the outstanding arrears, Tk 185.37 crore is to be paid for independent power producers and Tk 718.06 crore is due with public power generation companies. The rest Tk 109.41 crore is payable in tax on wheeling charges.

The government has already exempted the Tax at Source for 15 years for generating electricity under private sector IPPs.  Under section No-16 of the private power generation policy, the companies shall be responsible for payment of all taxes, VAT, contributions rates, charges and fees payable to any government authority of Bangladesh arising in connection with the construction, ownership, operation and maintenance selling of electricity and sale proceeds of facility other than corporate tax.

Form and after the commercial operation date, BPDB shall pay to the company, the prevailing corporate tax annually applicable for the facility in addition to capacity payments and energy payments only related to sale of energy to BPDB on an actual basis, the policy said.

“The electricity generation cost will go up significantly if PDB has to pay this huge sum of tax,” BPDB secretary Saiful Islam Azad informed the power division.

BPDB also requested NBR to allow them to submit income tax returns based on the actual cost of the electricity generation instead of calculating tax at sources.

The government has a plan to generate 24,000MW of electricity by 2021.