Titas Gas Transmission and Distribution PLC, a state-owned company listed on the stock exchange, reported a substantial loss of Tk711 crore in the first half of the current fiscal year, a stark contrast to the Tk47 crore profit recorded in the same period last year. The company's unaudited financial statement for July-December FY25 attributes the loss primarily to rising system inefficiencies and a tax policy change that now treats deducted tax at source as a minimum tax liability.

During this period, Titas reported a system loss of 10.63%, significantly exceeding the permissible limit of 2%. This discrepancy resulted in a considerable financial burden, as the company had to cover the cost of gas purchases without generating corresponding revenue. Additionally, a change in tax regulations eliminated the previous exemption for gas transmission and distribution companies, which had allowed them to claim refunds on excess tax deductions. Under the new rules, all tax deducted at source must now be treated as a minimum tax liability if the actual tax obligation falls below that amount.

Due to this regulatory shift, Titas had to recognize the entire deducted amount as a tax expense, contributing significantly to its losses. The company reported a minimum tax payment of Tk314 crore in the first half of the fiscal year, a sharp increase from just Tk21 crore during the same period last year.

The financial strain was further compounded by a 2% decline in revenue, which fell to Tk17,472 crore, largely due to a reduction in gas supply to the power and industrial sectors. Following the announcement of these losses, Titas Gas shares dropped 3.52%, closing at Tk19.20 on the Dhaka Stock Exchange.