Metro rail VAT exemption to continue; import duties on dates cut ahead of Ramadan
The interim government has decided to continue the value-added tax (VAT) exemption on metro rail tickets while also reducing import duties on dates to ease consumer costs ahead of the upcoming Ramadan.
The decisions were finalised today (11 December) at a meeting of the Advisory Council held at the Chief Adviser's Office in Tejgaon, presided over by Chief Adviser Muhammad Yunus.
Later in the afternoon, Press Secretary Shafiqul Alam briefed reporters at the Foreign Service Academy and said the government will forgo around Tk40 crore in annual revenue by extending the VAT waiver for metro rail tickets.
Keep updated, follow The Business Standard's Google news channel
"Metro rail has already become a transformative mode of transport for Dhaka commuters. Considering its public benefit, the government decided to keep the VAT exemption in place," he said.
In January, the National Board of Revenue (NBR) extended the VAT exemption until 31 December. Today's decision reaffirms and further strengthens that stance.
According to current VAT laws, tickets for any air-conditioned railway service carry a 15% VAT. Although metro rail is a fully air-conditioned mass transit system, the government has exempted it from VAT from the very beginning following requests from Dhaka Mass Transit Company Limited (DMTCL).
Alongside this, the government has reduced duties on date imports to help stabilise prices during Ramadan. The second half of February is expected to mark the beginning of the holy month.
Press Secretary Shafiqul Alam said the existing 25% import duty on dates has been lowered to 15%. Overall duties, which previously totaled 52.2%, will now come down to 40.7% after the revision.
He noted that the reduction aims to ensure an adequate and affordable supply of dates, one of the most consumed items during Ramadan.
With both decisions, the government aims to balance revenue considerations with public welfare, supporting urban commuters as well as low- and middle-income consumers preparing for the fasting month.
