VAT has been imposed on Metro from last July 1. Payment of VAT should start from this month. But no decision has been taken yet whether the VAT will be adjusted with the passenger fare.

However, it is known that a committee is being formed to determine whether the VAT amount will be coordinated with the passenger fare. If there is no new decision by NBR by July 21, VAT may be included in passenger fares.

A meeting was held between NBR, Ministry authorities and representatives of DMTCL in the meeting room of Ministry of Road Transport and Bridges today Thursday. Various issues related to VAT were discussed in the meeting.

The National Board of Revenue (NBR) has imposed Value Added Tax (VAT) on metro rail services. This VAT has to be paid by the metro operator Dhaka Mass Transit Company Limited (DMTCL). However, the company has not yet decided how the VAT will be paid.

Metro authorities have sought VAT exemption as new companies and public transport. It has been requested to reduce VAT from 15 per cent to 5 per cent in cases where full exemption is not possible. But NBR says they do not have the power to withhold VAT. NBR will implement any directive from Prime Minister’s Office or Finance Ministry. And they will get the VAT money from the company every month. And the company has to take the decision whether the company will adjust the passenger fare to pay the VAT. DMTCL Managing Director MAN Chiddi said, “The Ministry will talk about this.” I am not authorized to speak.’In 2023, NBR took initiative to add VAT on Metro services. VAT was then waived at the request of the metro authorities.

In May 2023, the NBR had issued a notification stating that there would be VAT exemption on metro rail tickets till June 2024. In view of that, VAT has been added from July 1. A letter has been sent to DMTCL regarding this. Against that letter, DMTCL sent a counter letter seeking VAT waiver. Even the Metro authorities are still optimistic about VAT reduction or Rohit. Meanwhile, in a letter signed by DMTCL Secretary Mohammad Abdur Rauf on June 30, it is said to add a VAT column in the accounting system to pay VAT on passenger services. The letter also says that 2022 on metro rail services NBR exempts VAT from December 28 to June 30, 2024. A letter has been sent to NBR on May 19 to continue VAT exemption. But against this letter no decision was received from NBR. If no decision is reached by July 21 next, VAT will be required to be automatically included in fares collected from passengers.