NBR mulls 15% VAT exemption on metro tickets | The Business Standard
Skip to main content
  • Epaper
  • Economy
    • Aviation
    • Banking
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • Subscribe
    • Epaper
    • GOVT. Ad
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
The Business Standard

Friday
May 30, 2025

Sign In
Subscribe
  • Epaper
  • Economy
    • Aviation
    • Banking
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • Subscribe
    • Epaper
    • GOVT. Ad
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
FRIDAY, MAY 30, 2025
NBR mulls 15% VAT exemption on metro tickets

Transport

Reyad Hossain
20 August, 2024, 09:10 am
Last modified: 20 August, 2024, 09:22 am

Related News

  • NBR officers declare chairman persona non grata at headquarters
  • Investors urge removal of BSEC chairman in meeting with CA’s special assistant, submit list of demands
  • NBR extends VAT return deadline till 19 June
  • Businesses set for relief as interim govt eyes major tax and fine cuts
  • FY26 budget: Black money whitening in real estate to stay – but with 5x taxes

NBR mulls 15% VAT exemption on metro tickets

NBR officials said the revenue authority’s VAT policy wing has already held internal discussions regarding the potential withdrawal

Reyad Hossain
20 August, 2024, 09:10 am
Last modified: 20 August, 2024, 09:22 am
A file photo of metro rail in Dhaka. Photo: Rajib Dhar
A file photo of metro rail in Dhaka. Photo: Rajib Dhar

The National Board of Revenue (NBR) is considering the removal of the current 15% value-added tax (VAT) on metro rail tickets amid the country's changing political situation, with the aim to reduce costs for passengers.

NBR officials said the revenue authority's VAT policy wing has already held internal discussions regarding the potential withdrawal. Once they receive approval from the newly appointed NBR chairman, the process will be moved forward through formal channels.

"We are initially considering a VAT exemption on metro rail ticket fares. However, we will present the proposal to the newly appointed chairman. Further official procedures for issuing the exemption order will proceed after receiving his approval," a senior NBR official told The Business Standard, requesting anonymity.

The Business Standard Google News Keep updated, follow The Business Standard's Google news channel

Infographic: TBS
Infographic: TBS

He also said, "We are considering the exemption until next June."

Under the current VAT and Supplementary Duty Act, a 15% VAT is applied to air-conditioned transport services. 

To encourage the use of the transportation system among city residents, Dhaka Mass Rapid Transit Company (DMTCL) requested the NBR to exempt metro tickets from VAT. Following the request, the revenue authority has waived the VAT on metro fares until June 2024.

The NBR did not extend the VAT exemption beyond the deadline and notified the DMTCL of this decision on 4 April. Despite the 15% VAT imposition, the DMTCL chose not to pass this cost on to metro passengers.

During the period, the relevant ministry and the DMTCL exchanged several letters with the NBR, seeking the withdrawal of the VAT. However, the then NBR chairman, Abu Hena Md Rahmatul Muneem, didn't respond.

An NBR official said that after a 15% VAT imposition, the minimum distance ticket price will be Tk23, up from Tk20 currently, while the maximum distance ticket price will be Tk115, up from Tk100. 

In an inter-ministerial meeting on 4 July, DMTCL authority requested a deferral of VAT on fares until 2032, DMTCL Managing Director MAN Siddique requested that no VAT be imposed on metro rail services until 2032, highlighting the complications of collecting VAT. 

The DMTCL authority said the VAT amount would need to be added to the current fare to collect this VAT. But the existing ticket machines, worth Tk1 crore each, are not equipped to handle this and replacing them would be both expensive and time-consuming.

Despite efforts to contact DMTCL Managing Director MAN Siddique by phone on Monday, TBS was unable to reach him.

Since April 2023, the metro rail has been operational for passengers. According to the authority, the metro rail runs 196 times daily from 7:10am to 10:14pm, serving approximately 300,000 passengers. It saves the public Tk8.38 crore each day in travel time costs and Tk1.18 crore daily in vehicle operation costs.

The metro rail service has been halted since July 20 due to vandalism at Mirpur-10 and Kazipara stations during the students' protests demanding reforms to the quota system for government jobs.

However, Muhammad Fouzul Kabir Khan, the newly appointed adviser to the Road Transport and Bridges Ministry, announced on Sunday that plans are in place to resume service within seven days.

Bangladesh / Top News

National Board of Revenue (NBR) / removal / Metro rail fare / vat

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • Deep depression over Bay of Bengal on 29 May. Photo: ANI
    Heavy rain, tidal surges trigger flood warnings as deep depression crosses coast
  • Powerful tidal surges from the Meghna River flooded more than 100 villages in four coastal upazilas of Lakshmipur on 29 May 2025. Photo: TBS
    Meghna tidal surge floods over 100 villages as incessant daylong rain batters Lakshmipur
  • Attackers vandalise the windows of the residence of Jatiyo Party (JaPa) Chairman GM Quader and set fire to a motorcycle in Rangpur on 29 May 2025. Photo: TBS
    Jatiyo Party chief GM Quader's Rangpur house attacked; NCP, SAD activists blamed

MOST VIEWED

  • Dhaka areas at a gridlock on Wednesday, 28 May 2025. Photo: Syed Zakir Hossain/TBS
    BNP, Jamaat rallies: Traffic clogs Dhaka roads, including Motijheel, Paltan, Dainik Bangla intersection
  • IFIC Bank receives Tk6,000 cr in new deposits in six months
    IFIC Bank receives Tk6,000 cr in new deposits in six months
  • Mohammad Abdul Mannan, chairman FSIB Ltd. Sketch: TBS
    FSIB to bounce back soon
  • Abdul Awal Mintoo, chairman of National Bank Limited. Sketch: TBS
    'Regulatory support must for National Bank to restore depositors' confidence'
  • Md Nazrul Islam Swapan, chairman of EXIM Bank. Sketch: TBS
    Exim Bank restored depositors’ confidence, overcoming challenges
  • Mohammad Mamdudur Rashid, managing director and CEO, UCB. Sketch: TBS
    Customers’ trust and confidence fueling deposit growth at UCB

Related News

  • NBR officers declare chairman persona non grata at headquarters
  • Investors urge removal of BSEC chairman in meeting with CA’s special assistant, submit list of demands
  • NBR extends VAT return deadline till 19 June
  • Businesses set for relief as interim govt eyes major tax and fine cuts
  • FY26 budget: Black money whitening in real estate to stay – but with 5x taxes

Features

For hundreds of small fishermen living near this delicate area, sustainable fishing is a necessity for their survival. Photo: Syed Zakir Hossain

World Ocean Day: Bangladesh’s ‘Silent Island’ provides a fisheries model for the future

7h | The Big Picture
The university will be OK. But will the US? Photo: Bloomberg

A weaker Harvard is a weaker America

7h | Panorama
The Botanical Garden is a refuge for plant species, both native and exotic. Photo: Mehedi Hasan/TBS

The hidden cost of 'development' in the Botanical Garden

7h | Panorama
Stillbirths in Bangladesh: A preventable public health emergency

Stillbirths in Bangladesh: A preventable public health emergency

7h | Panorama

More Videos from TBS

Record migrant deaths in 2024

Record migrant deaths in 2024

4h | Podcast
News of The Day, 29 MAY 2025

News of The Day, 29 MAY 2025

6h | TBS News of the day
Businesses set for relief as interim govt eyes major tax & fine cuts

Businesses set for relief as interim govt eyes major tax & fine cuts

9h | TBS Insight
Love is essential for human life

Love is essential for human life

8h | TBS Programs
EMAIL US
contact@tbsnews.net
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Advertisement
  • Privacy Policy
  • Comment Policy
Copyright © 2025
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net