Dhaka, Dec 24 (V7N)- The National Board of Revenue (NBR) has extended the value-added tax (VAT) exemption on metro rail tickets until June 30, 2026, aiming to further promote the use of the eco-friendly mass transit system.

The decision was announced through a notification issued on Wednesday (December 24).

Earlier, the VAT exemption on metro rail services was scheduled to remain in effect until December 31, 2025. The latest extension comes following a recommendation from the Ministry of Road Transport and Bridges.

According to officials, the continuation of the VAT exemption was also endorsed at a meeting of the Advisory Council held on December 11, where it was decided to keep metro rail fares free from VAT to encourage greater public use.

Under the existing VAT and Supplementary Duty Act, a 15 percent VAT is applicable on air-conditioned railway tickets. Since metro rail services are fully air-conditioned, they technically fall under this provision. However, since the launch of the metro rail, VAT has not been imposed on its tickets following a request from the Dhaka Mass Transit Company Limited (DMTCL).

The government believes that extending the VAT exemption will help make metro rail services more affordable and attractive, contributing to reduced traffic congestion and promoting sustainable urban transportation in the capital.

END/SMA/AJ