Dhaka: The government today announced an exemption of Value Added Tax (VAT) on metro rail services, as per an order issued by the National Board of Revenue (NBR).
According to Bangladesh Sangbad Sangstha, this exemption means that commuters using the metro rail service will no longer need to pay VAT on their purchased tickets. The order highlights the metro rail as a state-of-the-art and popular public transport system in Bangladesh, which is significantly contributing to reducing traffic congestion and saving valuable working hours for citizens.
The decision to exempt VAT is aimed at making metro rail travel more cost-effective, thereby increasing its popularity among the public. The NBR utilized its authority under sub-section (3) of section 126 of the Value Added Tax and Supplementary Duty Act, 2012, to exempt the metro rail service, recognized for its speed, safety, time efficiency, and environmental benefits, from VAT obligations.
The VAT exemption takes immediate effect and will be applicable until December 31, 2025, providing a financial relief for commuters and supporting the government's initiative to promote the use of metro rail services.