DHAKA, Jan 6, (V7N) –In a move aimed at making the metro rail more accessible and cost-effective for commuters, the National Board of Revenue (NBR) has announced an exemption from the value-added tax (VAT) on metro rail services.
This decision, outlined in a letter signed by Barrister Md Bodruzzaman Munshi, the second cecretary of the NBR's VAT Division, was issued on Monday.
The letter highlights the importance of metro rail as Bangladesh's most advanced and popular public transportation system. It plays a critical role in alleviating traffic congestion while also saving valuable working hours. To further increase its popularity, the NBR has emphasized the need to reduce travel costs for passengers.
Under the powers granted by Sub-section (3) of Section 126 of the Value Added Tax and Supplementary Duty Act, 2012 (Act No 47 of 2012), the NBR has exempted VAT on the metro rail service. The service, which is described as fast, safe, time-saving, environmentally friendly, and reliant on modern technology, will no longer be subject to VAT. This exemption will take effect immediately and remain in force until December 31.
The metro rail system in Bangladesh began its operations with the inauguration of the first metro line on December 28, 2022, connecting Uttara to Agargaon. The service has since been expanded to cover the Motijheel route. The metro rail does not have a class or categorization system for passengers, with all commuters paying the same fare to travel to their designated destinations.
This exemption is expected to make metro rail travel more affordable, encouraging more people to adopt this efficient and eco-friendly mode of transportation.
END/MSS/AJ
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