The issue of a potential fare increase for metro rail tickets, following the expiration of the 15-percent VAT exemption, is expected to be resolved this Thursday (4 July).
"An inter-ministerial meeting has been called on Thursday to resolve the VAT issue," said MAN Siddique, managing director of Dhaka Mass Transit Company Limited (DMTCL), in a conversation with Bangladesh First today.
Sources indicate that metro rail fares are likely to rise, as the Finance Bill 2024-25, passed by Parliament on 29 June, did not address anything about VAT on metro rail tickets.
Despite DMTCL's request to extend the VAT waiver into the next fiscal year, the NBR earlier turned down the request.
The National Board of Revenue (NBR) issued an office order in April, expressing their inability to waive VAT on MRT operations.
According to NBR officials, a 15-percent VAT on metro rail tickets became effective on 1 July, which remained exempted to facilitate the smooth launch of the rail.
DMTCL is required to pay the VAT for July by 15 August.
