Staff Reporter :
Amidst swirling speculations regarding the imposition of a 15pc Value Added Tax (VAT) on metro rail tickets set to take effect from July 1st, Road, Transport, and Bridges Minister Obaidul Quader has categorically denied any knowledge or decision regarding the matter.
Addressing an Iftar and Eid gifts distribution event organized by the ruling Awami League’s associate body, Matshajeebi League, at Rajdhani High School ground on Manik Mia Avenue in Dhaka, Minister Quader expressed his confusion and denied any official communication or decision regarding the speculated VAT imposition.
“Who suddenly announced such a thing? We are not aware of any such decision,” Quader stated firmly, further adding, “The metro rail service has been benefiting people, and as of now, no decision has been made regarding this matter.”
Acknowledging the significance of metro rail as a service-oriented transportation mode, Quader assured that discussions on the issue would be held with Prime Minister Sheikh Hasina. He emphasised that no decision has been taken regarding the imposition of VAT on metro rail tickets.
The issue arose amidst discussions concerning the expiration of VAT waivers on metro rail tickets, scheduled to conclude on June 30th.
The Dhaka Mass Transit Company Limited (DMTCL) had requested the National Board of Revenue (NBR) to extend the VAT waiver period, which was met with reluctance by the revenue board.
In a letter addressed to the managing director of DMTCL, the second secretary of NBR’s VAT Division, Barrister Md. Badruzzaman Munshi, cited ongoing development activities in the country and the need for revenue to fund these endeavors.
The letter highlighted the gradual withdrawal of tax exemption benefits across various sectors as part of revenue collection efforts.
While tax exemptions continue for specific groups such as freedom fighters, children below a certain height, and individuals with special needs who enjoy free or discounted metro rail travel, the expiration of VAT waivers has sparked concerns among the public.
Addressing the unrest in Chattogram Hill Tracts, Quader, also the ruling party’s spokesperson, emphasized the government’s firm stance against armed violence in the region.
Quader stated, “The government is undertaking a strict approach towards armed violence in Chattogram Hill Tracts. A joint operation is currently underway to address the situation, and we anticipate a swift resolution.”
He further elaborated, “A small group has initiated armed activities in Chattogram Hill Tracts, particularly in Bandarban.
However, it’s important to note that this group is not active in Rangamati or Khagrachhari. Certain individuals within this small group are providing arms and training.”
“Law enforcement agencies are collaborating on joint operations to address this issue.
We are optimistic that the situation will stabilize soon. It’s crucial to understand that the actions of this small group do not represent the entire hill region, and there is no indication that the entire area will become destabilized due to their activities,” added the AL leader.
