Fix source tax at 0.32% on gas bill instead of 3%

The Energy and Mineral Resources Division has proposed the National Board of Revenue (NBR) to fix source tax on gas at 0.32 per cent instead of existing 3 per cent.

In a recent letter to the NBR chairman, the energy division urged to take necessary steps in this regard.

Earlier on October 10 last, Petrobangla also urged the NBR to take measure in this regard but the board is yet to take any step.

Now, the energy division has sent a combined proposal of gas related companies including Titas Gas Transmission & Distribution Company Limited, Jalalabad Gas Transmission and Distribution System Limited and others.

The letter said that getting the gas bill from the consumers, gas companies keep the money to their bank account after providing 3 per cent source tax to the national exchequer.

The amount of deducted source tax is more than wheeling charge as the source tax is fixed at 3 per cent on the total gas bill according to Income Tax Ordinance. The gas companies meet their expenditure from wheeling charge, said the letter.

It added that Bangladesh Energy Regulatory Commission on June 4 last year raised the gas price for retail consumers after the natural gas price hiked due to LNG import. But the wheeling charge has not increased yet.

In June last year, BERC raised the average price of gas by 22.78 per cent for retail consumers. Later, the government on January 18 raised the retail price of gas by 14.5 per cent to 178.9 per cent for industries, power plants and commercial establishments.