Regent Airways (Dhaka) Chief Operating Officer Ashish Choudhury says the airline has reached a "mutual understanding" with Bangladesh's tax authority over the payment of outstanding duties.

Last week, the National Board of Revenue (NBR) froze Regent Airways' bank accounts citing its failure to remit BDT139.8 million takka (USD1.67 million) in unpaid excise duties to the fiscus.

Correspondence dated June 25 and seen by The Daily Sun said the authority has directed Prime Bank (Uttara Branch), Eastern Bank (Uttara Branch), and Trust Bank (Agrabad Branch), to freeze the airline's accounts pending payment.

The NBR had given Regent Airways seven days to settle the debt or risk the garnishing of its accounts.

The duty is collected by the airline at the time a passenger purchases a ticket. The fees vary from BDT500 for domestic flights, BDT2,000 for regional routes to Asian countries excluding SAARC countries, and BDT3,000 for flights to Europe, the United States, and other longhaul destinations.

Regent Airways (legally known as HG Aviation Limited) is a wholly-owned subsidiary of Bangladesh's Habib Group.