15 percent VAT is levied on metro rail tickets. As the National Board of Revenue (NBR) has declared ineligibility for VAT waiver, VAT will be levied on metro rail tickets from July 1 of the current financial year. Today this order was issued by the VAT department of NBR. Metrorail fares may increase by 15 percent as VAT is usually paid by the consumer.

There is currently a VAT exemption on Metrorail tickets, which is valid till June 30. Dhaka Mass Transit Company Limited requested the National Board of Revenue not to levy value added tax after the exemption period; But NBR is not interested in continuing this waiver facility. Because, according to the terms of the International Monetary Fund (IMF), all types of taxes should be reduced.

According to the order of the VAT Department, various developmental activities are being carried out in the country with the aim of becoming a developed country as per the Vision 2041. For that, the government has to constantly provide money, which is mainly collected through direct and indirect taxes. Tax exemptions are given from time to time in various fields with the aim of developing domestic industries, increasing production capacity of import substitute products, developing small and cottage industries etc. In addition to continuing the provision of funds for the huge development activities, the exemptions provided are being gradually withdrawn taking into account the capacity of various sectors with the aim of increasing the country's LDC transition and raising the tax-GDP ratio to the desired level. That is, the area of exemption is being narrowed.

In view of this reality, the National Board of Revenue has ruled out re-exempting the tax on Metrorail services from December 28, 2022 to June 30, 2024, after the expiry of the period.

Metrorail from Uttara to Agargaon was launched in December 2022. Metrorail is running from last year to Motijheel in full swing. At present, this urban transport system transports approximately two and a half lakh passengers every day.

From the beginning of 2023, NBR has taken the initiative to impose VAT on metro rail tickets. On January 22 of that year, Commissioner of Dhaka South VAT Commissionerate Shaukat Ali Sadi wrote to Dhaka Mass Transit Company Limited (Metrorail Company) calling for the imposition of VAT. Later, several meetings were held with the Metrorail authorities. However, the NBR eventually backtracked on the imposition of VAT.
In May 2023, the NBR had issued a notification stating that there would be VAT exemption on metro rail tickets till June 2024. But now NBR is not increasing its limit.