Metro travel to be cheaper as VAT exemption reinstated
Staff Correspondent
The government has reinstated Value Added Tax (VAT) exemption on metro rail tickets, ensuring passengers no longer have to bear the 15% VAT imposed in July, 2024.
The National Board of Revenue (NBR) issued a special order on Monday announcing the immediate enforcement of the exemption and it will remain effective until December 31, 2025.
It said that metro rail is the most modern and popular public transport in Bangladesh and is playing a big role in reducing traffic congestion as well as saving working hours of people.
In order to make Metro rail more popular, its travel costs need to be made affordable, it added.
Initially, the VAT exemption was granted in 2023 to support the service's launch.
However, the NBR did not extend the exemption, despite requests from the Dhaka Metro Rail Transit Corporation (DMTCL). The government imposed the VAT to help with domestic revenue mobilisation.
The imposition of VAT on metro rail tickets met with strong opposition from passengers, organizations, and social groups.
The Dhaka Metro Rail authorities then requested a deferral of the VAT on fares until 2032.
