The government has extended the Value Added Tax (VAT) exemption on Metro Rail services until June 30, 2026, aiming to promote the use of the country’s modern, environmentally friendly mass transit system.

According to a press release issued today by the National Board of Revenue (NBR), the decision was taken in the public interest to encourage wider public use of Metro Rail, which is considered a safe, efficient, and eco-friendly mode of urban transportation.

The VAT exemption on Metro Rail services was previously scheduled to remain effective until December 31, 2025.

However, considering the growing importance of Metro Rail in easing traffic congestion and improving urban mobility in the capital, the government decided to continue the tax relief for an additional six months.

The extension follows a recommendation from the Ministry of Road Transport and Bridges, which emphasized the role of Metro Rail in ensuring sustainable and affordable public transportation.

In this regard, the government issued a gazette notification on December 23, 2025, formally extending the VAT exemption period up to June 30, 2026, the NBR release said.

The move is expected to keep Metro Rail fares affordable for commuters and further enhance the popularity of the service as a modern solution to Dhaka’s growing transportation challenges.