CAB proposes cut in power, gas taxes

The Consumer Association of Bangladesh (CAB) has proposed to cut force and vitality taxes considering the troublesome financial circumstance during the COVID-19 pandemic.

The CAB has presented a proposition to Bangladesh Energy Regulatory (BERC) in such manner week, Prof M Shamsul Alam, vitality consultant of the CAB told the Daily Sun.

"We have discovered that the legislature can spare least Tk 100-120 billion by cutting the unreasonable' use on force and characteristic transmission, conveyance and creation frameworks," Prof Alam said.

Additionally, power age and flammable gas creation cost will descend if the legislature changes the advantageous obligation and VAT during the endorsement of the FY 21 spending plan, the proposition said.

As indicated by CAB, the nation's power age limit is around 22000 megawatts as of now. In any case, the force division 'strangely' broadened the residency of expensive oil-terminated force plants in spite of lower interest for power, Prof Alam said.

"So the administration will require paying Tk 22 billion as 'limit charge' of the strange force age cost," he said.

The CAB consultant additionally asserted the legislature is likewise working more than 20-years of age plants having the ability to produce 2400MW of power.

"The plants will expand the expense by Tk 10 billion."

The CAB additionally said the gas circulation organizations have likewise raised conveyance cost by the speculations on dispersion lines in seven areas without evaluation of flammable gas assets.

The CAB additionally positioned a 13-direct proposal toward the BERC including withdrawal of limit charge of rental and speedy rental force plants just as scarping the arrangements with 20 years of age open and private part plants.

Taxi said the force and vitality organizations have kept Tk 700 billion in various banks. In the event that the organizations put the store in various undertakings rather than Bank advances then the force and gaseous petrol creation cost descend.

The BERC can permit the state-possessed Bangladesh Power Development Board (BPDB) and Bangladesh Petroleum Corporation (BPC) to contribute the power and gas advancement store to assist them with lessening the duties, it said.

Coal duty can be balanced for decreasing the force age cost, it included.

Partners have just communicated their anxiety as the administration has proposed to present obligation on import of heater oil which is being utilized to create around 5,700MW of power in the nation.

Prof M Shamsul Alam said the administration has proposed to pull back the obligation on heater oil to expand the force duty again as opposed to bringing down the forced tax.

The sum is 34 percent on the costs of HFO. THE current HFO cost is roughly Tk18-20 for every liter, which was Tk 38-40 toward the finish of 2019.

It might be referenced that independent of import cost of HFO, base cost on which customs obligation and other related duties might be influenced has been assessed at USD 0.4/kg or Tk 34-35 kg. The current import cost of HFO is around Tk 18-20 Tk/kg.