The value-added tax (VAT) on metrorail-ticket prices came into effect on Monday after the expiry of the exemption tenure on June 30.
The metrorail authorities now require paying a 15-percent VAT on its total sales of tickets to the exchequer.
However, there was confusion over the imposition of VAT as ticket prices remained unchanged on the first day of the new fiscal year (FY).
A senior VAT official of the National Board of Revenue (NBR) said VAT came into effect on July 01, no matter if ticket prices increased or not.
The metro authorities have to pay a 15-per cent VAT on fares by August 15 for the month of July 2024, according to him.
The official said it was not necessary to hike up ticket prices to implement VAT.
The VAT was exempted for one year to facilitate the smooth launch of the rail, he added.
It has been imposed based on the prime minister's consent, according to the official.
Considering the dire need for domestic revenue mobilisation, the government has been compelled to take some 'unpopular' measures like this.
Currently, tickets of all public transport with air conditioning are under the purview of VAT.
According to a rough estimate, the government is likely to collect Tk 61.65 million in tax revenue from MRT (mass rapid transit) ticket fares per month.
VAT officials said VAT from MRT tickets would not be a significant amount for the government, but it would ensure a tax-paying culture and resolve discrimination in public transport tickets having A/C coverage.
On average, some 0.3-million passengers use the MRT route daily. The sale of MRT passes was recorded at more than 270,000 until 31 January 2024.
The MRT was launched in December 2022.
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