Institute for Planning and Development (IPD), a planning and development research and policy analysis organisation, has opposed the imposition of a 15 percent VAT on the metro rail by the National Board of Revenue (NBR) effective from July.
As a result of the VAT imposition, metro rail fares will increase by 15 percent, rendering regular metro rail services unaffordable for lower- and middle-class passengers, reads a press release.
Dhaka metro rail fares are already higher than those in many other Asian countries, including Kolkata, India; Lahore, Pakistan; Jakarta, Indonesia; Malaysia; and Kuala Lumpur, added the statement, stated the release.
“The excessive passenger load on the metro rail during peak hours does not indicate that the fare is affordable for the general people. Due to the acute shortage of quality public transport and heavy traffic congestion in Dhaka, many ordinary citizens regularly resort to using the metro rail,” said IPD.
Many low-income individuals traveling along the Uttara-Motijheel route are compelled to rely on substandard buses due to their inability to afford the current metro rail fare, stated the organization.
Although the metro rail has a daily passenger transport capacity of five lakh currently, only about three lakh passengers utilize it. Any increase in metro rail fares may further lessen its usage, added the release.
IPD urged NBR to maintain the existing value-added tax exemption for the metro rail.
