Metro Rail authorities urge govt to reconsider VAT imposition citing commuter sufferings
The Dhaka Mass Transit Company Limited (DMTCL) has urged the government to reconsider imposing Value Added Tax (VAT) on metro rail service as the burden will ultimately fall on commuters.
"VAT exemption on Metro Rail was extended by the government until June this year. If VAT is imposed starting 1 July, the 15% VAT will have to be paid by the passengers," Dhaka Mass Rapid Transit Company (DMTCL) Managing Director MAN Siddique said while speaking at an event "Branding Seminar on Dhaka Metro Rail" held at a hotel in Dhaka today (19 May).
"I would request the government to reconsider this decision," he added.
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Although electricity prices have increased three times since the launch of the metro rail, fares have not been raised. If VAT is added, passengers will have to bear the cost, as DMTCL cannot afford it, leading to increased metro rail fares, explained MAN Siddique.
The National Board of Revenue (NBR) had provided a VAT exemption on metro rail ticket prices last year, considering the service was not fully operational. And they were to provide the VAT exemption till June this year.
