The government today exempted Value Added Tax (VAT) on metro rail services, according to an order issued by the National Board of Revenue (NBR) here.

This (order) means the commuters of this service need not to pay any VAT on their purchased tickets. 

The order said that metro rail is the state-of-the-art and popular public transport in Bangladesh and is playing an important role in reducing traffic congestion as well as saving working hours. 

In order to make metro rail more popular, its travel costs need to be made cost effective, it added. 

The revenue board as per the power bestowed on it according to the sub-section (3) of section 126 of the Value Added Tax and Supplementary Duty Act, 2012 has exempted the fast, safe, time-saving, environment-friendly and state-of-the-art technology-based transport system metro rail service from paying Value Added Tax. 

This order shall come into immediate effect and shall remain in force until December 31, 2025.