In the first half of the current fiscal year, Titas Gas Transmission and Distribution PLC a publicly traded state-owned firm reported a loss of Tk 711 crore. The company attributed the setback to the recognition of tax at source as minimal tax and an increase in system losses. The company’s losses for the July–December FY25 period are in stark contrast to the Tk 47 crore profit made during the same time the previous year, according to its unaudited financial statement. Its loss per share at the conclusion of the first half was Tk 7.19. Its share price fell 3.52% to settle at Tk 19.20 on the Dhaka stock exchange today as a result of the growing loss.
Titas Gas claimed a system loss of 10.63% in its statement, which is far higher than the permitted limit of 2%. Consequently, the business was left with a significant acquisition liability and little revenue. The business added that Titas was able to request reimbursements for excess tax withheld at the source because gas transmission and distribution firms were previously exempt from minimum tax requirements under the Tax Law 2023. Nevertheless, during the current fiscal year, this clause was eliminated.
Despite suffering losses, the company had to pay Tk314 crore in minimum tax in the first half, which was a significant rise from Tk21 crore in the same time the previous year. A considerable cut in the gas supply to the electricity and industrial sectors, however, caused Titas Gas’s revenue to drop by 2% to Tk17,472 crore during the July–December period.
Source: The Business Standard
