Titas Gas incurs Tk711cr loss in Jul-Dec
It reported a system loss of 10.63%, far exceeding the allowable limit of 2%
Titas Gas Transmission and Distribution PLC, a publicly traded state-owned company, reported a Tk711 crore loss in the first half of the current fiscal year, attributing the setback to rising system losses and the recognition of tax at source as minimum tax.
According to its unaudited financial statement for July-December FY25, the company's losses mark a sharp contrast to the Tk47 crore profit recorded in the same period last year. At the end of the first half, its loss per share stood at Tk7.19.
Following the mounting loss, its share price dropped 3.52% to close at Tk19.20 at the Dhaka bourse today.
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In its statement, Titas Gas reported a system loss of 10.63%, far exceeding the allowable limit of 2%. As a result, the company had to bear a huge amount of purchase liability without getting any revenue.
The company further explained that previously, gas transmission and distribution companies were exempt from minimum tax requirements under the Tax Law 2023, which allowed Titas to claim refunds for excess tax deducted at source. However, this provision was abolished during the current fiscal year.
As a result, the company is now required to treat all tax deducted at source as a minimum tax liability if its actual tax obligation is lower.
Consequently, the company had to recognise the entire deducted amount as a current tax expense, which significantly contributed to its losses, the statement concluded.
In the first half, despite incurring losses, the company was required to pay Tk314 crore as minimum tax, a sharp increase from just Tk21 crore in the same period last year.
Meanwhile, Titas Gas experienced a 2% decline in revenue, falling to Tk17,472 crore in the July-December period, driven by a significant reduction in gas supply to the power and industrial sectors.
