A field office of the National Board of Revenue has sought permission to freeze the bank accounts of Titas Gas and Bakhrabad Gas to realise arrears of Tk 2,164 crore.

But the NBR said it wants to resolve the issue through discussion instead of taking such extreme measures.

Titas Gas Transmission and Distribution Company owes Tk 1,973 crore in VAT and supplementary duty and Bakhrabad Gas Distribution Company Tk 191 crore.

The NBR's field office -- Large Taxpayers Unit for value added tax -- claims Titas did not pass on the VAT and SD collected from clients between April 2014 and December 2014 to the national coffer and that of Bakhrabad from April 2014 to January 2015.  

A 15 percent VAT along with SD is applicable on distribution of gas to clients ranging from industries, electricity, fertiliser, CNG, commercial and households. The gas distribution companies have to collect the tax from consumers.

Although Titas deposited the VAT collected from industries between April 2014 and December 2015, it did not pass on the SD from industries along with the VAT and SD from other sectors. Bakhrabad Gas was guilty of the same, LTU officials said. The two state agencies have been asked to paying the arrears as per law, but they responded saying they did not owe anything as they had paid the SD and VAT applicable at the production stage to Petrobangla, a government-owned oil and gas corporation.

However, the government is yet to get the amount paid, LTU officials said.

Contacted, a senior official of Titas Gas said solution to the matter should come from the high authority.

Titas pays to local gas fields for purchase of gas from them and to Petrobangla for purchase of gas from the international oil companies.

“This payment cost includes SD and VAT. Petrobangla is aware about the matter,” the Titas official added.

Petrobangla Chairman Abul Mansur Md Faizullah could not be reached for comments.

The law has given commissioners the authority to take various steps to realise tax, said NBR Chairman Md Nojibur Rahman.

“But we want to realise tax based on discussion as this is a matter between two government divisions,” he said, adding that the finance minister might sit with all of related ministries.

The arrears are accumulating everyday, so it is win-win situation for all to pay all the dues.

“We will get closer to our annual tax collection target while the taxpayers will not have to pay interest on delayed payment of tax.”

Rahman said there is no provision of interest waiver on arrears in the law.

“They will have to pay additional interest. The delay means further rise in dues. Our slogan here for all is pay tax and relax.”

On the matter of freezing account, he said the NBR may have to go for it if the discussions fail to bring any solution. “That is the last step.”

The NBR's arrears from the energy division already stand at Tk 55,000 crore, which is abysmally high, he said

“The NBR has given maximum tax benefits to the energy division. The division must reciprocate by paying all arrears,” Rahman added.