On Monday, the National Board of Revenue (NBR) announced an extension of the VAT exemption on metro rail tickets for another year, effective until December 31 this year.
This decision follows an official notice issued by the NBR on the same day.
Bangladesh’s first-ever electricity-powered, elevated, and air-conditioned metro rail system is currently operating daily along the 20.1-kilometer Uttara-Motijheel route. According to the existing VAT laws, a 15% VAT is typically imposed on air-conditioned rail services. However, since the beginning of the metro rail operations, VAT has not been charged, following a request from the Dhaka Mass Transit Company Limited, the body responsible for the metro rail.
In its recent order, the NBR emphasized the importance of keeping metro rail fares affordable to encourage more people to use this modern, efficient form of public transportation. The metro rail plays a key role in alleviating traffic congestion and saving commuters valuable time.
The NBR referenced Section 126(3) of the Value Added Tax and Supplementary Duty Act of 2012, which grants an exemption from VAT on metro rail tickets. This exemption is now extended until the end of the year.
Earlier, on April 4, 2024, the NBR had issued a directive to start imposing VAT on metro rail services from July 1, 2024, but the government ultimately decided against it.
The metro rail system began operations with the 11.73-kilometer Uttara–Agargaon section, which was inaugurated on December 28, 2022. Service expanded to Agargaon-Motijheel on November 4. The full MRT Line 6, which will stretch over 21.26 kilometers from Uttara to Kamalapur, is expected to be launched in December this year.
 announced an extension of the VAT exemption on metro rail tickets for another year, effective until December 31 this year.){kind=link}