Staff Reporter :
The National Board of Revenue (NBR) has exempted the value-added tax (VAT) imposed on metro rail fares and services until 31 December 2025.
Metro rail fares were initially VAT-free, but the tax was introduced at the start of the 2024-25 fiscal year on 1 July 2024. Despite this, fares remained unchanged.
The exemption has been granted to make metro rail travel “more popular” and “cost-effective,” according to a notice issued yesterday.
The information was shared in a letter signed by Md. Badruzzaman Munshi, second secretary of the VAT policy wing at NBR.
As metro rail is considered the most modern and popular public transport in Bangladesh, playing a vital role in reducing traffic congestion and saving working hours, the need to make travel costs more affordable has been
emphasised to further increase its popularity, according to the letter.
The NBR’s announcement stated that the VAT exemption applies to the fast, safe, time-efficient, environmentally friendly, and technologically advanced metro rail services.
This directive will take effect immediately and remain in place until 31 December 2025.
