The National Board of Revenue (NBR) has exempted metro rail passengers from paying value-added tax (VAT) on tickets for this year in a bid to make the country's first electric urban transport system more affordable.
In a letter, Md. Badruzzaman Munshi, second secretary of the VAT Policy Wing of NBR, announced the exemption on Monday.
Metro rail is playing a vital role in reducing traffic snarl-up and saving working hours as a modern and popular mode of transport, the letter says, adding that the importance of making travel costs more affordable has been emphasised to increase its popularity.
DMTCL Managing Director in charge Mohammad Abdur Rouf welcomed the NBR's initiative and said it will benefit commuters who ride metro rail as their most desirable mode of transport every day. "The NBR has taken logical steps by waiving the VAT," he told the FE over phone.
The NBR had imposed a 15 per cent VAT on metro rail tickets effective from July 1, 2024. However, following a request from the DMTCL, the decision was held up considering people's affordability and comfort.
As the country's first electric urban mode of transport, metro rail has revolutionised the way people commute. Dhaka Mass Transit Company Limited (DMTCL) serves an average of 350,000 riders daily on its 20.1-kilometre route.
© 2025 - All Rights with The Financial Express
