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Road Transport and Bridges Minister Obaidul Quader has said that Prime Minister Sheikh Hasina has been urged to reconsider the decision to impose 15 per cent VAT on the passenger fare of the Dhaka metro rail service.
He on Sunday said that the prime minister has given the assurance of reconsidering the issue.
He said that the National Board of Revenue (NBR) suddenly announced the 15 per cent VAT on metro rail tickets. “I have informed the prime minister about this issue. This is a wrong decision by NBR. It cannot happen.
“It will spoil the goodwill of the metro rail. The prime minister has assured of reconsidering the matter.”
“No other country in the world has VAT on their metro rail service. There’s no VAT on India's metro rail as well. So why should we impose 15 per cent VAT on ours?” asked Quader, also the Awami League general secretary, while addressing a seminar, regarding the branding of Dhaka metro rail, organised by Dhaka Mass Transit Company Limited (DMTCL) at a hotel in Dhaka.
Calling metro rail an asset of the country, he said that the construction works of six metro rail lines, including two subways, will be completed by 2030.
He said the government has a target that around 5.24 million commuters will travel by metro rail quickly, safely and smoothly every day in 2030.
Addressing the seminar, DMTCL Managing Director MAN Siddique also called for reconsidering the decision to impose 15 per cent VAT on metro rail. “If 15 per cent VAT is levied, the financial burden on DMTCL will increase.”
In May last year, the NBR had decided to extend the VAT exemption on metro rail until June 30 this year.
“Now it is being proposed again to impose the 15 per cent VAT from July 1. If it is finalised, passengers will pay the price. So I request the government to review it,” Siddique said.
He said that electricity prices have increased thrice since the launch of metro rail. But the fare has not been increased. “Now, if VAT is added, metro rail will not be able to afford that. As a result, the metro rail fare will increase.”
Siddique also said that the route of Metro Rail Line-6 is being extended from Uttara’s Diabari to Tongi and five new stations — Diabari Bazar, Sonargaon Janapath Road East and West, Tongi Bazar and Tongi Railway Station — will be built on this route.
This route is also being extended from Motijheel to Kamalapur Railway Station currently, he added. “Now, the work to extend the route from Uttara Uttar station to Tongi Railway Station has started. The length of this stretch will be 7.5 km.”
