Value-added tax (VAT) is not being imposed on Dhaka metro rail tickets yet, according to Dhaka Mass Transit Company Limited (DMTCL), the government-owned company managing the mass rapid transit system. Despite the VAT waiver expiring on Sunday, June 30, no formal announcement has been made by the National Board of Revenue (NBR) regarding the imposition of VAT on tickets.
In the proposed budget for the 2024-25 fiscal year, Finance Minister Abul Hassan Mahmood Ali did not mention an extension of the VAT waiver, suggesting a 15% VAT would start from Monday, July 1. However, DMTCL sources indicated they had requested the NBR to withdraw the VAT back in April, but no response had been received.
As of Sunday night, DMTCL had not prepared to sell metro rail tickets with VAT. MAN Siddique, managing director of DMTCL, confirmed that they had listed several reasons for the VAT withdrawal in a letter sent to the NBR through the road transport ministry, but without a response, they are not collecting VAT on fares starting Monday. Siddique believes the NBR officials have been occupied with the budget and expects the VAT issue to be resolved soon.
