Why payment delays left BPC, Petrobangla owing Tk34,000cr
BPC and Petrobangla have been lifting fuel consignments without paying upfront, leaving more than Tk34,000 crore in unpaid duties and taxes, according to customs officials.
While private importers must clear all customs duties before goods are released from port, two of the government's largest energy importers – Bangladesh Petroleum Corporation (BPC) and Petrobangla – have been lifting fuel consignments without paying upfront, leaving more than Tk34,000 crore in unpaid duties and taxes, according to customs officials.
On the arrears, Petrobangla Director (Finance) Mizanur Rahman said LNG imports had previously been subject to double taxation, with a 15% VAT at the import stage and another 15% during distribution.
"The government withdrew the 15% import-stage VAT in June 2025, leaving only a 2% advance income tax (AIT) and no customs duty on LNG imports," he told The Business Standard.
"We are now paying the AIT regularly. Most of the Tk22,048 crore dues relate to the period before June 2025."
A senior Petrobangla official said chronic delays in government subsidy payments were the main reason the company could not clear its tax liabilities.
"We sell gas at a subsidised rate of around Tk2 per unit. The government is supposed to reimburse that subsidy, but Finance Division delays have left us short of cash," the official said.
The situation worsened as the taka weakened and global LNG prices surged, sharply raising import bills, according to him.
Petrobangla Chairman Mohammad Reznur Rahman said, "We are working with the NBR and the Finance Division. Some arrears have already been paid, and once the subsidy is disbursed, we will settle the remaining dues."
BPC and its subsidiaries have also built up large unpaid customs liabilities. Between July 2020 and June 2025, these entities imported goods under 7,190 bills of entry, creating potential unpaid duties and taxes of Tk12,347 crore, according to customs officials.
BPC's chairman and directors did not respond to calls for comment.
However, a BPC official said the corporation's companies regularly paid their dues and that payments were withheld only when disputes arose over customs claims.
'Unequal system'
Customs officials said repeated reminders had failed to secure timely payments, forcing the authorities to issue final demand notices.
They added that government-owned importers enjoyed operational privileges that private firms did not, allowing them to clear goods without immediate duty payment.
"Private importers cannot release goods without paying duties. But state-owned entities do, and that gap is one reason we struggle to meet revenue targets," said Tafsir Uddin Bhuiyan, additional commissioner of Chattogram Custom House.
With Chattogram handling most fuel imports, any delay by BPC and Petrobangla directly affected national revenue performance, he added.
Energy expert Prof M Tamim said the two companies collected duties and taxes from consumers but failed to pass them on to the government.
"Releasing imports without paying duties is a clear irregularity," he said, urging the National Board of Revenue to intervene.
