City Desk :
Dhaka Mass Transit Company Limited, or DMTCL, the operator of the metro rail, has not increased the fare for passenger services despite a VAT imposed on its services.
The government’s special order granting VAT exemption on metro rail services expired on Sunday.
Despite the introduction of VAT on Monday, authorities have not increased fares. It means the metro rail authorities will have to pay a 15 percent VAT on tickets from the current fares, reports bdnews24.com.
Under the VAT and Supplementary Duty Act of 2012, metro rail authorities are obligated to remit VAT revenue to the national treasury by Aug 15.
The decision on whether to raise fares or offset operational expenses to cover VAT payments, or seek government assistance, rests with metro rail authorities.
They are still requesting the National Board of Revenue, or NBR, to stick to the VAT exemption and are asking for government support.
DMTCL Managing Director MAN Siddique has not yet confirmed whether passengers will incur additional costs, and if so, how they will pay the VAT.
He told the media on Monday, “DMTCL will not bear the VAT burden. It will definitely have to be paid by the public.”
Regarding potential fare increases in the future, he said, “Meetings have been called by the Road Transport and Highways Division. Once decisions are made on this matter, we will know.”