The Dhaka Mass Transit Company Limited (DMTCL) has urged the government to reconsider imposing Value Added Tax (VAT) on metro rail service as the burden will ultimately fall on commuters.
“VAT exemption on Metro Rail was extended by the government until June this year. If VAT is imposed starting 1 July, the 15% VAT will have to be paid by the passengers,” Dhaka Mass Rapid Transit Company (DMTCL) Managing Director MAN Siddique said while speaking at an event “Branding Seminar on Dhaka Metro Rail” held at a hotel in Dhaka on Sunday.
“I would request the government to reconsider this decision,” he added.
Although electricity prices have increased three times since the launch of the metro rail, fares have not been raised. If VAT is added, passengers will have to bear the cost, as DMTCL cannot afford it, leading to increased metro rail fares, explained MAN Siddique.
The National Board of Revenue (NBR) had provided a VAT exemption on metro rail ticket prices last year, considering the service was not fully operational. And they were to provide the VAT exemption till June this year.
Meanwhile, Road Transport and Bridges Minister Obaidul Quader on Sunday said Prime Minister Sheikh Hasina has given the assurance of reconsidering the issue of imposing 15 percent value added tax (VAT) on metro-rail ticket.
He said this while addressing the “Branding Seminar of Dhaka Metro-Rail: A Step Towards Transforming Transportation” arranged by Dhaka Mass Transit Company Limited (DMTCL) in a city hotel.
Quader, also Awami League general secretary, said National Board of Revenue (NBR) suddenly announced imposing of 15pc VAT on metro-rail ticket.
“I informed the issue to the prime minister. This is a wrong decision of NBR. It cannot happen. It will spoil the goodwill of metro-rail. The prime minister assured of reconsidering the matter,” he said.
Noting that there is no VAT on metro-rail ticket in neighboring India, he questioned, “Why will we impose VAT on metro-rail fare?”
Expressing disappointment over pasting posters on metro-rail pillars, the minister said the country’s metro-rail service is very nice and it doesn’t make sound pollution.
He urged the users of metro-rail to protect the country’s valuable asset.
Quader said Dhaka should be made smart first to make Bangladesh a smart country.
He said Bangladesh has become a role model of development to the world under the leadership of Sheikh Hasina.
But the condition of the country’s capital city is not so good, he said, adding costly vehicles ply the streets but the condition of public buses is very bad.
“We must have to come out of this situation,” he said.
The minister said he feels ashamed looking at the buses plying the city streets.
He urged the mayors of the two city corporations of the capital to consider the matter with utmost importance.
Quader said construction works of six metro-rail lines including two underground lines will be completed by 2030.
He said the government has a target that around 52.40 lakh commuters will travel by metro-rail quickly, safely and smoothly every day in 2030.
The minister asked all stakeholders to work in unison to achieve the target.
Road Transport and Highways Division Secretary A B M Amin Ullah Nuri chaired the programme while Dhaka north mayor Atiqul Islam, Chairman of Parliamentary Standing Committee on Road Transport and Bridges Ministry Rezwan Ahmed Toufiq, DMTCL Managing Director M A N Siddique, Japanese Ambassador in Dhaka IWAMA Kiminori and Chief Representative of JICA Bangladesh Office Ichiguchi Tomohide were present, among others.
