No way to entertain such demand: NBR
The power division has requested the government for waiving value added tax worth around Tk 100 crore of the rural electrification board saying realisation of VAT might spark unrest among rural clients, officials said. Junior power minister Enamul Haque in a letter to finance minister Abul Maal Abdul Muhith late last month called for the waiver after the national board of revenue gave the REB reminders for payment of the dues.
Hauqe warned that realisation of VAT from REB clients at this stage might lead to create ‘Kansat-like’ situation, officials said quoting the letter.
Seventeen people were killed in 2006 at Kansat in Chapainawabganj, a north-western border town, when police opened fire to control villagers who launched a movement to protest realisation of additional metre fees and corruption by the REB officials.
Abdul Kafi, commissioner of large tax payers unit of VAT, told New Age on Thursday that the NBR had no scope of waiving the dues despite the concern expressed by the power division.
REB owed the dues to NBR as it failed to pay VAT that is generated from the fees REB realises from its clients. The dues had accumulated from 2008 to 2012.
Kafi said the waiver will create a bad precedence and encourage many other state-owned and private agencies to follow suit.
He said NBR had already advised the REB to pay the dues in phases or make alternative
arrangements so that no pressure was put on the clients.
A power division official said the minister of finance showed positive response to an alternative arrangement. He hinted at loan or subsidy as the alternative arrangement.
Whatever is the alternative arrangement it will be decided after negotiation between the ministry of finance and power division, he said.
The power division officials said REB’s financial health is not good although it has to maintain 2,45,000 kilometres electricity distribution line.
The REB’s liability to the government stood Tk 4577.25 crore until June 2013 since its establishment in 1977. REB operates its programme through its associations called Palli Bidyut Samity.
But 60, out of 70 such Samities, are facing financial problems.
At present, REB supplies electricity to around 9.4 million connections out of 14.2 million connections throughout the country.
-With New Age input
