The National Board of Revenue (NBR) has announced that metro rail services, including fares, will remain exempt from Value Added Tax (VAT) until 31 December 2025.
The announcement was made through a special order signed by Barrister Md. Badruzzaman Munshi, second secretary of NBR's VAT Division, on Monday (6 January).
"Since the metro rail is Bangladesh's most modern and popular public transport system, it plays a vital role in reducing traffic congestion and saving working hours. To make the metro rail even more popular, it is necessary to make travel costs more affordable," read the letter.
Initially, metro rail tickets were scheduled to enjoy a 15% VAT exemption until June 30, 2024. However, before the end of the exemption period, the NBR had decided not to extend the tax relief further.
Despite this, the Dhaka Mass Transit Company Limited (DMTCL), the entity operating the metro rail, advocated for a continued exemption to keep ticket prices affordable.
Under the current VAT Act, any air-conditioned railway ticket is subject to a 15% VAT. Additionally, the International Monetary Fund (IMF) has advised the government to avoid granting tax exemptions to ensure fiscal discipline.
