- Dhaka Mass Transit Company Limited (DMTCL) has requested a 10-year extension of the VAT exemption for metro rail tickets to keep travel costs affordable and encourage metro use.
- The current VAT exemption is set to expire on 31 December 2024, after which a 15% VAT would be imposed, significantly increasing commuter costs.
- NBR officials state that only the interim or next elected government can approve an extension until 2035, not the NBR itself.
- DMTCL argues that VAT would make metro travel less affordable, potentially deterring commuters and harming public perception.
- The company highlights the metro’s role in reducing traffic congestion and cites India’s long-standing VAT-free metro systems as a precedent.
Source: deshkalnews.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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