15% VAT may be imposed from July on metro rail tickets
The VAT waiver is set to expire on 30 June, after which the fare will increase
Metro rail fare is poised to get costlier from next month, as Finance Minister Abul Hassan Mahmood Ali did not make any comment about extending the existing 15% VAT waiver on the train tickets while presenting the proposed budget for fiscal year 2024-25 today (6 June).
The VAT waiver is set to expire on 30 June, after which the fare will increase.
The National Board of Revenue (NBR) proposed to impose VAT on metro rail tickets from the beginning of 2023.
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On 22 January 2023, Customs, Excise & VAT Commissionerate, Dhaka (South) Commissioner Showkat Ali sent a letter to Dhaka Mass Transit Company Limited (DMTCL) calling for the imposition of VAT.
There were several meetings between NBR and metro rail authorities in this regard. Eventually, the NBR backed off from imposing VAT.
In May 2023, NBR issued a notification stating that VAT on metro rail tickets will be waived until June 2024.
