Govt exempts VAT on metro rail services

The government on Monday exempted value added tax (VAT) on metro rail services, according to an order issued by the National Board of Revenue (NBR).

This means the commuters of this service need not to pay any VAT on their purchased tickets.

The order said that metro rail is the state-of-the-art and popular public transport in Bangladesh and is playing an important role in reducing traffic congestion as well as saving working hours.

In order to make metro rail more popular, its travel costs need to be made cost-effective, it added.

The revenue board as per the power bestowed on it according to the Sub-section (3) of Section 126 of the Value Added Tax and Supplementary Duty Act, 2012 has exempted the fast, safe, time-saving, environment-friendly and state-of-the-art technology-based transport system metro rail service from paying VAT.

This order will come into immediate effect and remain in force until 31 December 2025.