Planning and development research and policy analysis institute Institute for Planning and Development (IPD) has demanded withdrawal of NBR’s decision to impose VAT on Metrorail. This demand was stated in a press release sent by IPD Director Professor Adil Muhammad Khan and Executive Director Mohammad Ariful Islam on Sunday (April 7).
According to the notification, IPD is strongly opposed to the decision of the National Board of Revenue (NBR) to impose VAT on Metrorail from next July. As a result, Metro Rail fares will increase by 15 percent. As a result, regular use of Metrorail may be out of reach for many of Dhaka’s low- and middle-class users. As a result, the IPD is demanding the immediate withdrawal of the decision to impose VAT on the Metrorail, the public transport of Dhaka’s rich and poor.
According to IPD, the existing fare of metro rail in Dhaka city is already higher than many other countries in Asia. The cost of traveling by metro rail in India’s Kolkata, Pakistan’s Lahore, Indonesia’s Jakarta, Malaysia’s Kuala Lumpur, etc. is less than the current fare of Bangladesh’s metro rail. However, there is no opportunity to be confused by the current demand and excessive pressure of passengers on Dhaka Metrorail during peak hours, that the current fare of Metrorail is within the limits of people’s regular travel. Due to the acute crisis of quality public transport in Dhaka and excessive traffic congestion, many common people are regularly traveling by metro rail by paying extra fares by cutting from other daily expenses. Many low-income people on the route between Uttara-Motijheel are forced to ply the substandard buses on this route as they cannot afford to board the Metrorail at the existing fare.
IPD feels that oversimplification and misuse of IMF policy in public transport like Metrorail is not desirable at all.
The IPD also said that the National Board of Revenue should focus on raising direct taxes like income tax on the rich rather than collecting revenue through indirect taxes like VAT on metrorail, a rich-poor public transport. At the same time, taking into account the ability of the masses to keep the metro rail fare affordable, the IPD is demanding to find alternative strategies to ensure affordable metro rail fares through effective coordination between the Ministry of Communications, Dhaka Mass Transit Company Limited (DMTCL) and NBR.
