IPD opposes VAT on metro rail fare
Institute for Planning and Development (IPD), a planning and development research and policy analysis organisation, have strongly opposed the National Board of Revenue's (NBR) proposal to implement VAT on the metro rail from next July.
This would lead to a 15 percent hike in Metro rail fares, potentially dissuading regular users from the low and middle classes from using the services, said a joint press statement of the IPD.
Existing metro rail fares in Dhaka city are already higher than many other Asian countries like India, Pakistan, Indonesia, Malaysia, etc, IPD added.
Due to severe lack of quality public transport and heavy traffic congestion, numerous ordinary individuals already opt for metro rails despite the higher fares, read the statement signed by IPD Director Dr Adil Muhammad Khan and its Executive Director Dr Mohammad Ariful Islam.
Metro rail in Dhaka has a daily passenger capacity of 500,000, yet currently only 300,000 passengers use it, preventing its full potential usage. Therefore, the proposed fare increased by metro rail might further decrease its user count, they added.
IPD urged the Communications Ministry, DMTCL, and NBR to coordinate effectively and ensure affordable metro rail fares, considering people's ability to pay.
It also urged to search for alternative strategies to reduce the subsidy in metro rail.
The NBR on April 4 wrote to the metro rail authorities, saying they would not extend the exemption of 15 percent VAT, supposed to be imposed on December 28, 2022, when the metro rail launched.
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