Amidst swirling discussions regarding the potential enforcement of a 15% VAT on metro rail tickets starting July 1, Road, Transport, and Bridges Minister Obaidul Quader expressed ignorance on the matter during a statement on Friday.
Addressing an Iftar and Eid gifts distribution event organized by the Awami League’s front Matsyajibi League at Rajdhani High School ground on Manik Mia Avenue in Dhaka, Quader, also the General Secretary of the ruling party, stated, “Who abruptly declared such a policy? We have no insights into it.”
Highlighting the metro rail’s service-oriented nature, Quader mentioned plans to deliberate on the issue with Prime Minister Sheikh Hasina. “The metro rail is serving the people. However, we haven’t reached any decision regarding the VAT imposition,” he remarked.
Expressing bewilderment over the sudden announcement before any high-level governmental consensus, Quader urged journalists to inquire further into the matter.
Currently, metro rail tickets enjoy a VAT waiver, set to expire on June 30. Despite the Dhaka Mass Transit Company Limited’s (DMTCL) plea to extend the exemption, the National Board of Revenue (NBR) expressed reluctance.
In a communication to DMTCL’s managing director, Barrister Md Badruzzaman Munshi, the NBR’s VAT Division secretary revealed the impending end of VAT exemption on metro rail tickets.
The communication underlined the necessity of financial resources for national development initiatives, highlighting the gradual withdrawal of tax exemptions across various sectors.
Additionally, the letter noted specific provisions for certain groups, including free travel for freedom fighters and children under three feet in height, along with discounted fares for individuals with special needs.
