The fare of the metro rail services is going to be increased from July 1 this year. The National Board of Revenue on Thursday decided to impose value added tax on the services.
Terming the decision as ‘unexpected’, Dhaka Mass Transit Company Limited managing director MAN Siddique on Thursday said, ‘If the VAT is imposed then it will be a burden on the passengers as there is no other alternative.’
Mentioning that DMTCL is a company, he also said that in case of a price hike of anything such as electricity the burden would be on the passengers at last.
He declined to make any further comment on the matter as they did not get the office order formally till Thursday afternoon.
The country’s first-ever electricity-powered elevated and air-conditioned rail system is in operation now on the 20.1-kilometre-long Uttara-Motijheel route every day except Friday amid enthusiasm.
The minimum fare on metro rail is Tk 20 while the highest fare covering the entire route is Tk 100.
Currently the exemption of the VAT on metro rail tickets is in effect till June 30.
If a general 15 per cent VAT is imposed then the lowest and the highest fares will be Tk 23 and Tk 115 respectively.
Currently about 2.5 lakh passengers are daily using the services.
The DMTCL, under the road transport and bridges ministry, is the implementing agency of the metro rail services.
An office order was issued by the NBR’s VAT Act and Rule branch on Thursday in this regard.
It read that the DMTCL earlier requested the NBR not to impose the VAT on the metro rail services after the period of exemption on the services between December 28, 2022, and June 30, 2024, is completed.
The board evaluated the request, the order also said.
It said that different types of development activities were ongoing in the country keeping in view the objective of becoming a developed country as per the Vision – 2041.
The government has to provide money for these activities continuously, the order also said.
This money is mainly coming from direct and indirect taxes. Tax exemption facility is mainly given in different sectors to expand the local industries, small and cottage industries and increase capacity to produce alternative products for imported products.
The scope for exemption is being gradually withdrawing to keep supplying money to huge development, to graduate Bangladesh from the least developed countries’ group and increase the ratio of tax and Gross Domestic Product.
In these circumstances, after the completion of the period of exemption on the services between December 28, 2022 and June 30, 2024 on the metro rail services, the NBR expresses inability giving exemption again on the metro rail services.
Prime minister Sheikh Hasina launched the metro rail services on the Uttara–Agargaon section on December 28, 2022, and then on November 4, 2023 she inaugurated the service on the entire Motijheel-Uttara section.
The entire MRT Line-6 project on the 21.26-kilometre-long Uttara-Kamalapur route is scheduled to be inaugurated in December 2025.source: newage
