Metro travel to be 15% costlier from July
Staff Reporter :
Under the banner “Metro rail for all,” the service launched on December 29, 2022, was celebrated for its affordability and efficiency.
However, this accessibility is set to change as the National Board of Revenue (NBR) announced a 15% VAT on metro rail tickets starting July, citing adherence to International Monetary Fund (IMF) guidelines as the rationale behind this decision.
This move by the NBR, unveiled on Thursday, comes despite the exemption from VAT that metro rail tickets have enjoyed up until now—an exemption that expires on June 30.
Despite appeals from the Dhaka Mass Transit Company Limited to maintain the waiver beyond this date, the NBR has declined, emphasizing its commitment to the IMF’s recommendations for reducing tax exemptions.
In its announcement, the NBR aligned its decision with the broader Vision 2041, aimed at propelling the country towards becoming a developed nation through extensive developmental projects.
The need for consistent financial inflow, largely via direct and indirect taxes, was highlighted as crucial for these initiatives.
The NBR noted that while tax exemptions have historically been granted to foster the growth of small and cottage industries, enhance domestic production, and augment import alternatives, such incentives are being scaled back.
The strategy is intended to improve financial capacity across various sectors, ultimately supporting the nation’s ambitions for a higher tax-GDP ratio and successful transition from a least developed country (LDC), thereby fueling its developmental trajectory.
The metro rail, which travels from Uttara to Matijheel, has become very popular, carrying about 250,000 people every day.
However, there’s news that might not be so welcome: starting in July, the cost of a metro ticket is going to go up because of a new 15% tax.
Right now, if someone wants to go from Uttara to Matijheel, they pay 100 taka for a trip. But with this new tax, the same trip will cost 115 taka.
This price increase is a bit of a problem for many people who use the metro, especially because they earn a set amount of money and things are already expensive due to high inflation and the rising cost of everyday items.
Last year, there was talk about adding this tax, but after some discussions, it was decided not to. However, now the tax office says they have to add it starting from July.
They explained that the extra money from the tax is needed to help fund development projects in the country.