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No idea about 15% VAT on metro rail ticket: Quader

UNB . Dhaka
05 Apr 2024 16:21:00 | Update: 05 Apr 2024 17:21:51
No idea about 15% VAT on metro rail ticket: Quader
— UNB Photo

Amid speculations regarding the imposition of a 15 per cent VAT on metro rail's ticket with effect from July 1 – Road, Transport and Bridges Minister Obaidul Quader said on Friday that they know nothing about the matter.

"Who suddenly announced such a thing? We don't know anything about it," he said.

Quader, also general secretary of the ruling Awami League, said this while addressing an Iftar and Eid gifts distribution programme organised by the party's front Matshojeebye League at Rajdhani High School ground on Manik Mia Avenue in Dhaka on Friday morning.

Calling the metro rail a service-oriented transportation, he said they would discuss with Prime Minister Sheikh Hasina on the issue.

"People are benefiting from it. And we haven't made any decision on that," he said about the VAT issue.

Quader said they don't know who announced it in a hurry before any high-level decision of the government. Journalists should have asked about it.

There is currently a VAT waiver on Metrorail tickets, which will expire on June 30. DMTCL requested NBR to extend the period but the revenue board expressed unwillingness to extend the exemption.

The Second Secretary of NBR VAT Division Barrister Md Badruzzaman Munshi sent a letter to the managing director of Dhaka Mass Transit Company Limited (DMTCL) in this regard.

According to the letter, VAT exemption on metro rail tickets will expire on June 30.

In the letter, the revenue board said various development activities are going on in the country with the goal of attaining the status of a developed country by 2041.

The government has to constantly provide money to carry out those development activities, which is mainly collected through direct and indirect taxes.

Tax exemptions are given to various sectors on different occasions with the aim of promoting domestic industries, reducing import dependence and developing small and cottage industries, etc, said the letter.

That is why tax exemption benefits are being gradually withdrawn from various sectors.

Besides, freedom fighters and children of three feet height can travel free of charge, and people with special needs can travel on metro rail at a 10 to 15 per cent discount.

'strict stance against violence in Ctg'

The government is taking a strict stance on armed violence in Chattogram Hill Tracts, said Awami League General Secretary and Road Transport and Bridges Minister Obaidul Quader.

"A joint operation is underway there. The situation will soon calm down," he said.

Quader was speaking at the Eid gift distribution programme of the Matshojeebye League at Manik Mia Avenue in the capital on Friday morning.

"A small group has started some armed activities in Chattogram Hill Tracts. This small group is not present in Rangamati or Khagrachhari. It is only in Bandarban. Some young people from this small group are providing arms and training," he said.

"Law enforcement agencies are conducting joint operations in this regard. Hopefully, the situation will calm down soon. And there is no reason to think that the entire hill region will become unstable due to this armed vigilance," added the AL leader.

Matshojeebye League President Saidur Rahman presided over the programme.

Awami League Publicity and Publication Secretary Abdus Sobhan Golap, Matshojeebye League President Saidur Rahman, Executive President Saiful Alam Manik and General Secretary Sheikh Asgar Naskar were present on the occasion, among others.

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