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Value-added travel

Major reform in both tax collection and public transportation remains as crucial as ever

Update : 24 May 2023, 09:20 AM

It is very encouraging to learn that commuters using the metro rail in Dhaka enjoy the advantage of a 15% VAT (value-added tax) exemption on ticket prices, and the National Board of Revenue (NBR) must be applauded for such a decision.

Indeed, while the current exemption lasts until the end of the fiscal year, it would be wise for the relevant authorities to consider maintaining the exemption, especially for certain groups within society.

As correctly identified, the metro rail services cater to people from all walks of life. For our metro rail system to evolve to become an effective and efficient public transportation system, it is important to make it accessible and affordable to all members of society.

However, while the exemption of fares on the metro is positive news, both tax revenue and the overall public transportation system remain far from ideal for Bangladesh -- moving forward, the authorities concerned must continue to prioritize improvement in both these avenues.

For generating more tax revenue, it is imperative that the relevant authorities stop harassing everyday people and rather identify those within society who, despite their privileged positions, are depriving state coffers of millions by not paying their taxes.

In terms of improving our public transportation, full operation of the metro rail must only be the first step, and we hope that in addition to better roads and infrastructure, we continue to see more initiatives to prioritize the usage of public transportation.

In order to sustain our economic development while easing the lives of ordinary citizens, major reform in both tax collection and public transportation remains as crucial as ever. 

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