Dhaka Metro hopeful govt will spare passengers from VAT
“We are in constant communication with the government, urging them not to impose VAT on metro services. Imposing VAT would burden passengers directly, increasing their travel costs,” stated MAN Siddique.
The Dhaka Mass Transit Company Limited (DMTCL) remains hopeful that the government will refrain from imposing Value Added Tax (VAT) on metro rail fares, despite looming budgetary changes.
In a press briefing held in the capital today (13 June), MAN Siddique, managing director of DMTCL, expressed confidence that the government would consider the implications on commuters before making a final decision.
"We are in constant communication with the government, urging them not to impose VAT on metro services. Imposing VAT would burden passengers directly, increasing their travel costs," stated MAN Siddique.
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Usually, VAT is levied on air-conditioned public transport fares, but an exemption was granted to the metro rail service when it commenced operations on 28 December 2022. This exemption is set to expire on 30 June, with no inclusion in the upcoming fiscal year's proposed budget.
If VAT is implemented post-June 30, metro passengers could face a 15% increase in fares, translating to an additional Tk15 for every Tk100 spent.
In addition to VAT concerns, MAN Siddique announced adjustments to metro service timings effective 19 June, aligning with new government office schedules. Fridays will continue as weekly holidays, with alterations in train frequency on other public holidays excluding Saturdays.
He said, "Starting 19 June, following Eid-ul-Adha, the government's new office hours from 9am to 5pm will lead to adjustments in the metro rail's peak and off-peak schedules."
Detailing the changes, he noted that from Uttara North to Motijheel, there will be a special off-peak period from 07:10am to 07:30am with trains every 10 minutes.
Peak hours are scheduled from 07:31am to 11:36am and from 02:25pm to 08:32pm, with trains running every 8 minutes. During off-peak hours, from 11:37am to 02:24pm, trains will arrive every 12 minutes.
There is also a special off-peak period from 8:33pm to 9:00pm, with trains arriving every 10 minutes.
Similarly, from Motijheel to Uttara North, there will be a special off-peak period from 7:30am to 8:00am with trains every 10 minutes.
Peak hours are from 08:01am to 12:08pm and from 3:05pm to 9:12pm, with trains arriving every 8 minutes. Special off-peak hours are observed from 12:09pm to 03:04pm, with trains arriving every 12 minutes.
There is also an additional special off-peak period from 09:13pm to 09:40pm, with trains arriving every 10 minutes.
Meat transportation on the metro is now banned. "Rawhides of sacrificial animals and raw or cooked meat cannot be carried on metro trains," MAN Siddique said, adding that existing restrictions remain unchanged.
Metro train services will be suspended on 17 June for Eid-ul-Adha.
