‘Who made this sudden declaration that 15 percent VAT will be imposed on metro rail fares from July? We don't know anything about it,' the road transport minister says
Published : 05 Apr 2024, 07:58 PM
Road Transport Minister Obaidul Quader says the government has ‘no information’ regarding news reports that a VAT price hike will be imposed on Dhaka metro rail fares from Jul 1.
The minister expressed his surprise as such news was published before the government high-ups had taken any decision tied to a rise in metro rail fares.
He questioned who could have imposed such a tax so suddenly.
“Who made this sudden declaration that 15 percent VAT will be imposed on metro rail fares from July? We don't know anything about it. We will discuss the issue with the prime minister,” a surprised Quader said at an Eid gift distribution event organised by the Awami Matsyajibi League in Dhaka’s Manik Mia Avenue on Friday.
The Awami League secretary general also said the metro rail is a special service of public transport that benefits people and July is still far away.
“We haven't taken any decision on this. I don't know who suddenly gave such news. The journalists should have asked about this, but they didn’t verify it in the proper place."
On Thursday, the VAT department of the National Board of Revenue, or NBR, issued an order stating that although a 15 percent VAT had been imposed on metro rail tickets, it was waived when the modern transport system was launched. Now, that exemption will no longer be provided.
And so, from Jul 1, metro rail passengers will have to pay VAT on their tickets.
The NBR said it has informed the managing company, Dhaka Mass Transit Company Limited (DMTCL), about this through a letter.
The metro rail service from Uttara to Agargaon was launched on Dec 28, 2022. Since last year, it has been fully operational up to Motijheel.
From the beginning, to encourage commuting via metro rail, the NBR had been providing VAT exemption to passengers. Last month, DMTCL had appealed to the NBR to continue this benefit.