2024-04-06 02:06:18
15 percent VAT is levied on metro rail tickets. VAT will be added to metro rail tickets from July 1 this year. This may increase the metro rail fare. Because VAT is usually paid by the consumer. The National Board of Revenue (NBR) has written to Dhaka Mass Transit Company Limited (DMTCL) in this regard.
NBR officials said that the letter was given on Thursday (April 4). However, the letter has not yet reached DMTCL, sources said.
An official of DMTCL said, I have come to know through the media that NBR has decided to impose VAT. The official letter has not reached us yet.
Meanwhile, according to the NBR, tax exemptions are being reduced in all sectors to increase revenue according to development needs. Therefore, the VAT exemption of this sector will not be increased.
As per the current VAT Act, any air-conditioned railway ticket is subject to VAT of 15 per cent. Metrorail is fully air-conditioned and public transport. The NBR had discussed with the Metrorail company early last year the imposition of VAT on Metrorail tickets. However, earlier NBR exempted VAT on metro rail fare from December 28, 2022 as a special consideration. This facility will remain in force until next June.
According to calculations, if VAT is included, the fare of Rs 20 will be Rs 23. The fare of 70 taka will be 80 taka, the fare of 100 taka will be 115 taka.
However, when asked whether there will be any problem for Bhangti to buy a single journey ticket if the fare is increased, the Metrorail official said that no decision has been taken yet.