Govt eliminates VAT on metro train fares and decreases import taxes

The government has exempted the value-added tax (VAT) on metro rail tickets and reduced the tax on date imports ahead of the holy month of Ramadan.

The decision was taken at the weekly meeting of the Council of Advisers on Thursday at the Chief Adviser’s Office (CAO) here, with Chief Adviser Professor Muhammad Yunus in the chair.

Chief Adviser’s Press Secretary Shafiqul Alam revealed the information at a briefing at the Foreign Service Academy here on Thursday afternoon.

He said due to the exemption of the VAT on metro rail fare, the government will have to lose about Taka 40 crore per year. But the government took the decision considering that the metro rail is playing an epoch-making role in the transportation of the city dwellers, the press secretary added.

He further said that the government also reduced the tax incidence on dates to 40 per cent from the existing 52 per cent to facilitate the consumers in the upcoming holy month of Ramadan.

Shafiqul Alam said that there was a customs duty of 25 per cent on date imports, which has been reduced to 15 per cent.