VAT on metro rail, fare to rise

The deadline for the 15% Value Added Tax (VAT) exemption on Metrorail tickets expired on Sunday (June 30). So, the VAT is scheduled to impose on the sector from Monday (July 1).

However, the Dhaka Mass Transit Company Limited (DMTCL) authority said that Dhaka metro rail fare is unlikely to increase from Monday (July 1) as the metro rail authorities are yet to get any direct reply from the National Board of Revenue (NBR).

Following the issue, NBR first secretary (VAT policy) Mohammad Hasmat Ali, said as there is no special order from the NBR, so VAT will be imposed on the metro rail as per the previous decision.

Besides, DMTCL Managing Director MAN Siddique said that we have sent a letter to the Ministry not to impose VAT. The ministry has given direction to NBR, now we are waiting for the reply (letter).