Dhaka: The government has announced an extension of the Value Added Tax (VAT) exemption on Metro Rail services until June 30, 2026, as part of its strategy to promote the use of the nation’s modern and environmentally friendly mass transit system.
According to Bangladesh Sangbad Sangstha, the decision to extend the VAT exemption was taken in the public interest to encourage broader public use of Metro Rail, which serves as a safe, efficient, and eco-friendly urban transportation option.
The VAT exemption was initially set to expire on December 31, 2025. However, given the increasing importance of Metro Rail in alleviating traffic congestion and enhancing urban mobility in the capital, the government opted to prolong the tax relief by an additional six months.
The extension comes after a recommendation from the Ministry of Road Transport and Bridges, highlighting Metro Rail’s crucial role in delivering sustainable and affordable public transportation.
To formalize the extension, the government issued a gazette notification on December 23, 2025, extending the VAT exemption period until June 30, 2026, as stated in the NBR release.
This initiative is anticipated to maintain affordable Metro Rail fares for commuters and boost the service’s popularity as a modern solution to Dhaka’s escalating transportation challenges.