Metrorail: Obaidul Quader doesn’t know about VAT imposition on ticket fare

Road transport and bridges minister Obaidul Quader has expressed his grievance over the decision on imposition of 5 per cent VAT (value added tax) on metrorail ticket fare.

“I don’t know who suddenly announced 15 per cent VAT on metrorail fares. I do not know who suddenly gave such news before any decision at the upper echelon of the government,” the minister said.

Obaidul Quader said this at the Eid gift distribution ceremony of the Awami Matsyajibi League at Manik Mia Avenue in the capital on Friday.

The VAT department of the National Board of Revenue (NBR) on Thursday issued an order. It said, 15 per cent VAT will be levied on metrorail tickets from 1 July this year.

Metrorail ticket fare may increase by 15 per cent as VAT is usually paid by the consumer.

Mentioning that he will talk to the prime minister about the issue of VAT on metrorail tickets, Obaidul Quader said today, “Metrorail is a special service of public transport. People are benefiting from it. I don’t know who suddenly gave such news before any decision at the highest level of the government.”

Currently, there is a tax waiver privilege for the metrorail with effect until the end of the current fiscal. The operating authority, Dhaka Mass Transit Company Limited, requested the NBR to continue the privilege in the next fiscal, but received a negative response.

The NBR said they are not interested in continuation of the tax waiver facility as there is an obligation to slash all types of tax waivers as per the conditions set by the International Monetary Fund (IMF).