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Metrorail fares are subject to VAT at the full rate rather than at a reduced rate. Passengers will have to pay 15 percent VAT on ticket prices from next July. The National Board of Revenue (NBR) is going to propose this in the upcoming budget.
NBR officials, who did not wish to be named, say that the subject of imposing VAT on metro rail fares was presented recently in the budget meeting with the Prime Minister. The Prime Minister did not give any instructions to take VAT at a lower rate. Therefore, it is proposed to impose VAT at the rate of 15 percent.
NBR claims that tax exemptions are being reduced in all sectors to increase revenue according to development needs. Therefore, the VAT exemption of this sector will not be increased. As a result, metro rail passengers will have to pay 15 taka VAT on a fare of 100 taka from July.
Even before this, in April last, the subject of VAT on metro rail ticket prices came up for discussion. At that time, the National Board of Revenue (NBR) also issued a letter to Dhaka Mass Rapid Transit Company Limited (DMTCL). However, Road Transport and Bridges Minister Obaidul Quader rejected the information at that time.
On April 5, the minister had said that VAT on metro rail fares would suddenly increase by 15 percent from July, making such an announcement. We don't know anything about it. We will discuss this with the Prime Minister. Metrorail is a special service of public transport. People are benefiting from it. July is still far away. And we have not taken any decision on this.
Considering the interests of passengers, NBR has exempted VAT on metro rail fares from December 28, 2022. That benefit remains in force until June. Recently, the Metrorail authority wrote to NBR to extend the VAT exemption period. But it was rejected.
Bangladesh /MP
