Metro rail fares should stay stable, according to Dhaka Mass Transit Company Limited Company Secretary Mohammad Abdur Rauf.
Rauf stated in an interview on Monday that passengers will continue to pay the current fares without incurring any additional fees, even though plans call for a 15% VAT to be implemented on July 1.
The VAT exemption on metro rail tickets was set to expire on June 30, prompting concerns over fare hikes in the new fiscal year. Although the Finance Minister's budget proposal did not extend the exemption, DMTCL's appeal to the National Board of Revenue (NBR) remains pending.
Rauf emphasised that DMTCL's stance is clear: advocating against VAT imposition or extending the exemption period in the public interest. While awaiting NBR's response, he assured his readiness to implement any government decision promptly.
Regarding system updates for fare adjustments, Rauf affirmed DMTCL's capability to adapt swiftly to new directives. However, he expressed hope that NBR will consider their appeal favourably, avoiding complications in fare updates.
Meanwhile, DMTCL Managing Director MAN Siddique highlighted ongoing communication with NBR to resolve technical concerns should VAT be imposed. Despite the pending VAT decision, Siddique assured that fares would not increase abruptly without prior notice.
Discussions on the VAT issue began in April, triggered by NBR's plan to withdraw tax exemptions for DMTCL. The Ministry of Road Transport and Bridges intervened by requesting that NBR reconsider, citing multiple reasons in support.
If implemented, the 15% VAT would impact fares directly, with a 20-taka fare rising to 23 taka, a 30-taka fare to 34.50 taka, and a 100-taka fare to 115 taka. Siddique noted the logistical challenges of adjusting vending machines to accommodate non-multiples of ten fares.
Under the VAT Act, air-conditioned public transport fares are subject to 15% VAT, a category that includes metro rail services. Despite efforts to secure a VAT waiver, DMTCL awaits a definitive response from NBR to determine future fare adjustments.
