The National Board of Revenue (NBR) is looking to add 15 per cent value added tax (VAT) to metro rail fares. A letter has been sent to Dhaka Mass Transit Company Limited (DMTCL), the company managing the metro. Against that letter, DMTCL sent a counter letter seeking VAT waiver. Metro Rail fares are not increasing until this issue is resolved.

If eventually VAT is 15 percent then normally the rent of 100 rupees will become 115 rupees. Similarly, the entire fare list should be adjusted by distance. But the metro authority does not want to increase the fare. Due to this, the electricity price has increased but the rent has not been increased.

So even if the VAT on Metro is not completely waived, efforts are being made to reduce it. And what will be the amount of VAT in the end, how much of that VAT will be borne by the passenger; These issues have not yet been finalized.

DMTCL Secretary Mohammad Abdur Rauf told Kal Kantha that we are waiting for the new order. Everything will be operated as usual until further orders are received.

Even if VAT is added, efforts are being made to reduce the amount. In such circumstances there is no scope to increase the rent. But whatever the future holds, a swift settlement is under way.

Road Transport and Bridges Minister Obaidul Quader himself has spoken against the non-inclusion of VAT in Metro Rail, which is widely popular as a public transport. He even said that he has requested Prime Minister Sheikh Hasina to reconsider the matter of not adding VAT to Metro.

NBR has already waived VAT on metro rail fares till Sunday. However, in 2023, an initiative was taken to add VAT from NBR. VAT was then waived off 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.

On the condition of anonymity, a senior official of DMTCL told Kal Kantha, “We want to remain VAT exempt as public transport. NBR says VAT will be charged as it is AC (air-conditioned). Which is applicable to general trains. But conventional trains have class structure. Those who will go for AC seat or cabin for more money paid VAT, ok. But there is no class system in metro trains.

Finance Minister Abul Hasan Muhammad Ali did not say anything about Metro Rail’s VAT waiver in his proposed budget speech for the fiscal year 2024-25 in the Jatiya Sangsad on June 6. This creates haze. Considering the situation, if there is no announcement of VAT waiver by today, 15 percent VAT is expected to be added to metro rail fares from tomorrow, Monday.

Additional Project Director of Metro Rail Line-6. Zakaria Kale told Rakantha, “We still don’t know what’s in the money bill.” No decision can be taken till we get some instructions.