Dhaka: The VAT department of the National Board of Revenue (NBR) has proposed levying VAT (value added tax) on metro rail tickets. But Dhaka Mass Transit Company Limited or Metrorail Company does not want to pay this VAT.
They argue, the elites don’t travel on Metrorail, the common people do.
It is known that on January 22, Commissioner of Dhaka South VAT Commissionerate Shaukat Ali Sadi wrote to Dhaka Mass Transit Company Limited (Metrorail Company) calling for the imposition of VAT. In the letter, it was mentioned that 15 percent VAT should be levied on the tickets of passengers traveling in metro rail as air-conditioned coaches.
Dhaka Metrorail Company responded to the letter in the first week of this month. In response, it is said that all classes of people board the metro rail with the same fare. Hence, VAT will not be applicable on such transport. After receiving this reply from the Metrorail Company, a letter has been sent to the National Board of Revenue (NBR) seeking instructions in this regard from the Dhaka South VAT Commissionerate. No instructions yet.
As per the VAT Act, any air-conditioned railway ticket is subject to 15 percent VAT. Dhaka Metrorail is fully air-conditioned and is public transport.
In this regard, Dhaka Metrorail Company Director and Company Secretary Mohammad Abdur Rauf told the media, ‘According to the VAT Act, VAT is imposed on air-conditioned coaches or AC tickets. The philosophy in this case is that non-AC tickets are also available in the same train. There is also a class distinction in tickets. Generally elite class passengers buy AC tickets. VAT is fine in their case. ‘
But Mohammad Abdur Rauf said, referring to the same type of ticket of the same price for all in the metro rail, “Our objective is that people of all classes, including low-income, lower-middle-income people, will go from one place to another faster on the metro rail.” So it will not be right to impose VAT. ‘
The director of Dhaka Metrorail Company also mentioned that if VAT is imposed, the fare of Metrorail will increase further.
Bangladesh Time: 19120 hours, March 19, 2023
ZA/MJF
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