Passengers to get exemption for another six months

The government has decided to extend the Vat exemption facility for Metrorail passengers by six months more, until June 30. 2026.

The facility is scheduled to expire on December 31, 2025.

Finance adviser Dr Salehuddin Ahmed recently approved the proposal on exemption of 15 per cent Vat on prices of Metrorail tickets. Earlier, the National Board of Revenue (NBR) sent the proposal to the ministry.

The decision came following requests from the Dhaka Mass Transit Company Ltd (DMTCL), the state-run operator of the metro rail.

A senior official of the VAT department said the proposal would be sent to the advisory council for its nod.

As per Tax Expenditure policy, the NBR has no authority to offer any tax exemption without prior approval of the advisory council or Parliament, he added.

The much-talked-about Dhaka metro rail began commercial operations at the end of December 2022 and it became hugely popular among commuters especially office goers and students who got an escape from commuting on chaotic buses.

Roughly, more than 0.45 million people commute through the metro rail per day.

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