Metrorail fares may increase from July 1 

Metro rail tickets are enjoying a VAT (Value Added Tax) waiver, which is valid till June 30. 

Prices of metro rail tickets may increase from July 1 unless a decision is made to extend the exemption of 15 per cent VAT on the tickets by the June 30 deadline.

Finance Minister Abul Hasan Mohammad Ali did not say anything about the extension of the VAT waiver period in the proposed budget for the fiscal year 2024-25. 

The National Board of Revenue (NBR) planned to impose VAT on metro rail tickets starting in 2023.

Dhaka Mass Transit Company Limited (DMTCL) contacted the Dhaka South VAT Commissionerate, Shawkat Ali, on January 22, 2023.

Several meetings were also held between the NBR and metro rail authorities, but the NBR eventually decided not to impose the VAT.

In May 2023, the NBR announced in a circular that the VAT exemption would remain until June 2024.