Bangladesh
Metro Rail Metro rail fare likely to rise by 15% in July
Dhaka, Feb 14: The National Board of Revenue (NBR) is considering imposing 15 percent Value Added Tax (VAT) on metro rail tickets. However, the Metro Rail authorities said that they remain under VAT from tax on income generated from ticket sales and overall revenue.
If the NBR's plan to add VAT on metro rail tickets is implemented in the next budget, the government's revenue will increase. But it will make metro rail travel more expensive for commuters.
After levy of 15 percent VAT, the minimum ticket price for the shortest distance will increase from the current Tk 20 to Tk 23. Maximum distance ticket price will be increased from Tk 100 to Tk 115.
An NBR official, who did not wish to be named, said, “As per government directives, NBR had given VAT exemption on metro rail ticket prices last year. This exemption was given mainly because the work was not completed and not fully operational. Now, the NBR aims to withdraw the concession to generate more revenue from the sector.”
NBR sources also said that they will organize a meeting with Dhaka Mass Transit Company Limited (DMTCL) to convey the decision.
However, Deputy Project Director (Public Relations) of DMTCL Nazmul Islam Bhuiyan said that he has no information in this regard so far.
"I don't think there is any scope to levy VAT separately on tickets. Because we are paying or will pay VAT annually on our overall income," he added.
