Bangladesh’s interim government has decided to withdraw the 15 percent value-added tax (VAT) on Dhaka Metro Rail tickets, a move expected to cost the state around Tk 40 crore in annual revenue. The decision was approved at a council meeting chaired by Chief Adviser Professor Dr. Muhammad Yunus on December 11, according to his press secretary Shafiqul Alam.

Officials said the exemption aims to ease commuting costs for Dhaka residents, as the metro rail has become a vital part of the city’s daily transport network, serving roughly 250,000 passengers each day. The VAT had been imposed on July 1, 2024, by the previous administration. The same meeting also approved tax reductions on dates ahead of Ramadan and endorsed several legal amendments, including the Commercial Court Ordinance and the Registration Amendment 2025.

Analysts note that while the VAT removal may reduce short-term revenue, it could encourage greater public transport use and ease urban congestion. Further fiscal adjustments may be needed to offset the revenue shortfall.