NBR extends VAT exemption on Metro Rail services
The VAT exemption on Metro Rail services has been extended until 30 June 2026 to keep fares affordable and encourage the use of environment-friendly mass transit.
The National Board of Revenue (NBR) has extended the value-added tax (VAT) exemption on Metro Rail services until 30 June 2026, aiming to promote the use of the environment-friendly mass transit system.
According to an official release issued today (24 December), the government earlier granted a VAT exemption on Metro Rail services.
The existing exemption is scheduled to expire on 31 December 2025.
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In the greater public interest and following a recommendation from the Ministry of Road Transport and Bridges, the government decided to continue the VAT waiver for a further six months.
A gazette notification to this effect was issued on 23 December 2025, extending the exemption up to 30 June 2026.
The move is expected to help keep Metro Rail fares affordable for city dwellers while encouraging a shift from private vehicles to mass transit, thereby reducing traffic congestion and carbon emissions in the capital.
