IPD opposes VAT on Metro Rail fare

Institute for Planning and Development (IPD), a planning and development research and policy analysis organisation, on Sunday strongly opposed the imposition of VAT on Metro Rail by the National Board of Revenue (NBR) from next July, reports UNB.

This will result in a 15 percent increase in Metro Rail fares, which may put off regular users among Dhaka's low- and middle-class. For this reason, the IPD is demanding the immediate withdrawal of the decision to impose VAT on the Metro Rail, the public transport of Dhaka's rich and poor, says a joint press statement of the IPD.

Existing Metrorail fares in Dhaka city are already higher than many other Asian countries like Kolkata, India, Lahore, Pakistan, Jakarta, Indonesia, Malaysia, Kuala Lumpur, etc. Metro Rail travel cost is less than the current fare of Bangladesh Metro Rail. However, there is no opportunity to be confused by the current demand and excessive pressure of passengers on the Dhaka Metro Rail during peak hours, that the current fare of the Metrorail is within the limits of people's regular travel, it says.

In their joint press statement, Prof Dr Adil Muhammad Khan, Director of the  IPD and its Executive Director Dr Mohammad Ariful Islam said that due to the acute crisis of quality public transport and excessive traffic congestion, many common people are regularly traveling by metro rail by paying extra fares cutting from their other daily expenses.

Many low-income people on the route between Uttara-Motijheel are forced to travel by substandard buses on this route as they cannot afford to board the metro rail at the existing fare.

Metro Rail has a daily passenger transport capacity of 5 lakh but now about 3 lakh passengers are using it in Dhaka. As a result, we are still not able to use the Metro Rail to its full capacity. That is why, Metro Rail's proposal to increase fares may reduce its number of users.

The IPD demanded to consider the ability of the people to keep the fare of Metro Rail affordable and urged the Communications Ministry, Dhaka Mass Transit Company Limited (DMTCL) and NBR to ensure affordable fares of Metro Rail through effective coordination.

It also urged to search for alternative strategies to reduce the subsidy in the Metro Rail.