NBR may extend VAT exemption on metro rail tickets

The government may extend the six-month value-added tax (VAT) exemption on metro rail tickets until June next year, which has gained a lot of popularity since the beginning of its operations.

Commuters of the metro rail are currently enjoying a VAT exemption on their fares, which is scheduled to end on December 31 this year.

Besides, the government has already decided to withdraw the Tk 5,000 excise duty on air tickets for Hajj pilgrims for their outbound and return flights from next year.

Md Bodruzzaman Munshi, second secretary of VAT Policy at the NBR, confirmed these to The Daily Star today.

"A note has been sent to the advisory councils for approval on the metro rail, while the cabinet has already passed the excise duty exemption for Hajj pilgrims," he said.

The much-talked-about Dhaka metro rail began commercial operations at the end of December 2022, and it has become hugely popular among commuters — especially office-goers and students — who got an escape from commuting on chaotic buses.