No VAT on metro rail

It is a commendable decision by the government that metro rail services have been exempted from Value Added Tax (VAT) for one year. The National Board of Revenue (NBR) issued an order to this effect on Monday. This means that metro rail commuters will not be required to pay any VAT on their purchased tickets. This decision has been warmly welcomed by commuters. The metro rail, a modern and popular public transport system in Dhaka, plays a crucial role in reducing traffic congestion and saving working hours. It is also an environment-friendly transport system. The waiver of VAT for a year is a step towards making the travel costs more affordable. Initially, VAT was exempted under special consideration until June 30, 2024. After the expiration of the exemption, NBR imposed a 15 per cent VAT, which led to protests. This was later suspended, and now VAT has been waived for a year.

Globally, metro rail is a popular and efficient mass rapid transit system. It helps to transfer a large number of commuters within a short period of time. Metro rail is an essential part of any modern city. In Bangladesh, the metro rail started its operation on December 29, 2022. It is the country's first mass rapid transit and it gained huge popularity from the beginning. There is a massive plan to construct six metro lines. Currently, MRT-6 is in operation, stretching from Uttara to Matijheel. It will be extended to Kamlapur soon. The regular commuters in the city have trouble getting transport. Terrible traffic congestion and chaotic public buses take a heavy toll on commuters. In this situation, metro rail comes as a relief for a section of commuters. The operating company wants to recover the construction cost as soon as possible. But, this is not logical given the overall situation.

Shamapti Yasmeen

Karwan Bazar, Dhaka