VAT is effective on Metrorail from July 1 Metro | VAT
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VAT is effective on Metrorail from July 1

Bangladesh Live News | @banglalivenews | 04 Apr 2024, 11:25 pm

Own Correspondent, Dhaka, 4 April 2024: VAT exemption on metro rail tickets is no longer increasing. From July 1, VAT will have to be paid on metro tickets. The rate of VAT will be 15 percent. The National Board of Revenue (NBR) informed Dhaka Mass Rapid Transit Company (DMTCL) in a letter on Thursday.

NBR exempted metro rail fare from 28th December 2022 thinking about passengers. This facility will remain valid till June 30. DMTCL recently wrote to NBR to extend the period of VAT exemption. But the company rejected this request. According to the NBR, tax exemptions are being reduced in all sectors to increase revenue as per development needs. Therefore, the VAT exemption benefits of this sector will not be extended. As a result, metro rail passengers will have to pay 15 taka VAT on a fare of 100 taka from July.

The letter signed by NBR Second Secretary Barrister Md. Badruzzaman Munsi states that Dhaka Mass Transit Company Limited has requested the National Board of Revenue not to impose value added tax on metro rail services from December 28, 2022 to June 30, 2024. The National Board of Revenue has reviewed the matter.

The letter also said that according to the vision 2041, various development activities are underway in the country with the goal of joining the ranks of developed countries. The government has to constantly provide funds to carry out developmental activities, which are mainly collected through direct and indirect taxes. Tax exemptions are given from time to time in various fields with the aim of development of domestic industries, increase in production capacity of import substitute products, development of small and cottage industries etc.

It is said there, the exemptions granted are being withdrawn gradually, taking into account the ability of various sectors to move the country from LDC and raise the tax-GDP ratio to the desired level, including continuing to provide money for the huge development campaign, that is, the area of exemption is being narrowed.