Metro fares won’t go up from today

Despite the NBR not extending the VAT exemption on metro rail fares, the metro rail authorities have decided not to increase fares from today.

The Metro authorities said they are yet to receive a reply from NBR regarding their appeal seeking a review of the revenue authority’s decision to impose 15 percent VAT from Monday.

“We are waiting for their [NBR] reply… We have to talk to them about some technical issues even if we have to impose VAT on fare,” MAN Siddique, managing director of Dhaka Mass Transit Company Ltd (DMTCL), told The Daily Star.

Another DMTCL official, wishing not to be named, said even if DMTCL decides to impose VAT, they would not increase metro rail fares without giving a prior announcement.

The issue of whether 15 percent VAT would be imposed on metro rail fares from July 1 has been under discussion for the last couple of months.

The discussion began in April when NBR decided to revoke the tax exemption for DMTCL.

But, DMTCL, through the Road Transport and Bridges Ministry, wrote to NBR to review the decision.

An NBR official said they did not extend the exemption order till Saturday.

Meanwhile, MAN Siddique said no reply from NBR came till 8:30pm yesterday.

“There are technical issues regarding the imposition of VAT on fare. We have to talk with the [NBR] officials to settle the issues. But they were busy as the budget was passed today,” he said.