To Halt VAT Imposition On Metro Rail, Trying Best: DMTCL

After imposing the VAT on metro rail ticket by the National Board of Revenue (NBR), Metro rail authorities said that they will ask to reconsider its decision to impose 15 percent VAT on metro rail fare from July 1.

Mohammad Abdur Rouf, company secretary of Dhaka Mass Transit Company Ltd (DMTCL) said to media that they would try their best to halt the decision. 

Meanwhile NRB today wrote to DMTCL saying they will not extend the exemption of 15 percent VAT, which was supposed to be imposed from December 28, 2022 when the metro rail service launched, after June 30.

Contacted, Rouf said they were yet to formally receive NBR's letter but heard about it.

Regarding the issue he said NBR last year proposed to lift the exemption but deferred it following DMTCL's request.

Later on the same proposal has given from NBR this year again, as they once again requested them not to impose VAT as it would have impact on passenger fair, he said.

In case of conventional trains, people have the option to use non-AC seats, but the air-conditioning is built into the metro rail service, he added.

The country's first metro rail service was opened to public partially in December 2022 and fully from September last year.

Around 2.95 lakh passengers used the trains daily before Ramadan and earned around Tk 1.5 crore daily.

The fair from Uttara to Motijheel is Tk 100 and minimum fare is Tk 20.