Urban planners oppose decision to impose 15% VAT on metro rail
The Institute for Planning and Development (IPD) has opposed the National Board of Revenue's (NBR) decision to impose 15% VAT on the Dhaka metro rail from July.
"A 15% increase in fares will put the metro rail out of reach for many low and middle-class commuters in the city. So, the IPD demands the immediate withdrawal of the decision to impose VAT on the Dhaka metro rail," the institute said in a statement today (7 April).
Claiming that the existing metro rail fares in Dhaka are already higher than many other Asian countries, the IPD said, "Dhaka metro rail has a daily passenger transport capacity of 5 lakh but now about 3 lakh passengers are using it. So, the proposal to increase fares might curtail the metro rail's use."
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It further said, "The NBR's rationale for levying VAT on metro rail that 'all tax cuts should be reduced as per International Monetary Fund (IMF) conditions' is not correct and therefore unacceptable.
"The IPD feels that oversimplification and misuse of IMF policy in public transport like metro rail is not desirable at all."
