Staff Reporter:
The National Board of Revenue (NBR) has declined to extend current VAT exemption facilities enjoyed by the Dhaka metro rail operating company, effectively contributing to a 15% ticket price hike from July.
As per the new order, fare for the shortest distance, for example between Farmgate and Karwan Bazar, would rise to Tk23 from Tk20. Similarly, ticket for the longest distance would cost Tk115, up from Tk100.
NBR would impose 15% Vat on each passenger journey after the existing exemption provision expires on 30 June, the state revenue collector said in a letter sent to Dhaka Mass Transit Company Ltd (DMTCL) on Thursday.
DMTCL, the operator of metro rail, previously wrote to NBR to extend the exemption which the company has enjoyed since the start of commercial operations on 28 December 2022.
The NBR has declined to provide further exemption. In its response in Thursday’s letter, NBR said the government needs huge sum of money to continue mega development activities for meeting the Vision 2041 of transforming Bangladesh into a developed country.
The authorities already allow enough exemptions on industrial operations to reduce import reliance and develop the country’s large-, medium- and small-scale industries.
With a view to improving the tax-GDP ratio and help the country graduate from the ranks of least developed countries (LDC), authorities are working to shrink tax exemptions across different sectors.
