In the fiscal year 2025, the National Board of Revenue (NBR) intends to impose a value-added tax (VAT) of 15% on tickets for metro train. The Metro Rail Authority counters that they already pay taxes on overall earnings and ticket sales profits in addition to VAT.
Industry experts inquire as to whether or not there is a rationale for reintroducing VAT on tickets.
In the meantime, more government money would come from the NBR’s proposal to include VAT in metro train ticket prices if it is included in the next budget. On the other hand, it would increase the cost of travel for passengers on the metro train.
The lowest distance ticket price would climb to Tk23 from Tk20, and the greatest distance ticket price would rise to Tk115 from Tk100, based on calculations made after a 15% VAT was imposed.
Citing the service’s imperfect operational condition, an NBR official, who wished to remain anonymous, revealed that last year the NBR had given a VAT exemption on metro train ticket rates in compliance with government guidelines. In order to increase revenue from this industry, the NBR now seeks to withdraw that exemption.
Also, according to NBR sources, a meeting with Dhaka Mass Transit Company Limited (DMTCL) will be scheduled to apprise them of the decision.
DMTCL Deputy Project Director (Public Relations) Nazmul Islam Bhuiyan said, “Till now (February 13, evening), we have not heard anything from NBR about this issue. I came to know about VAT on tickets from you. But I don’t think there is any scope to apply VAT to tickets separately. Because we are paying or will be paying annual VAT tax on our overall income.”
