A 15 per cent value-added tax (VAT) is going to be levied on metro rail tickets from Monday (July 1).
The VAT on metro rail tickets remained exempted till June 30.
The National Board of Revenue (NBR) had been providing VAT waiver to metro rail tickets since December 28, 2022. But, the NBR said it would not provide VAT exemption after June this year.
Because of it, Dhaka South Excise and VAT Commissionerate has requested the Dhaka Mass Transit Company Limited (DMTCL) to take necessary steps to deduct designated amount of VAT on metro rail tickets and deposit it to the state exchequer from July 1 of the 2024-2025 fiscal year.
It was known from a letter sent to the DMTCL managing director. Signed by Shawkat Ali Saadi, Commissioner of the Dhaka South Excise and VAT Commissionerate, the letter states that the time-limit of VAT exemption is going to expire on June 30. The NBR offered waiver on metro rail tickets from December 28, 2022 to June 30, 2024. Though the issue of VAT waiver was discussed later on following a letter sent by the DMTCL, the NBR expressed its inability to offer further waiver of VAT on metro rail tickets.
Following the NBR's decision to withdraw exemption of VAT on metro rail tickets, it directed its relevant department to realise VAT on tickets at a rate of 15 per cent from July 1.
Prime Minister inaugurated the country's first metro rail on December 28, 2022 from Uttara to Agargaon. Then the movement of metro rail was expanded up to Motijheel in phases. Metro rail passengers don't have any class. All the passengers can travel to the specific stations paying the same fair.
Besides, heroic freedom-fighters and children up to three feet of height can travel without any fair, while specially challenged individuals can travel at 10 to 15 per cent discount.
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