The government yesterday formed a technical committee to submit a report on VAT-related issues for metro rail service.

The committee, led by Neelima Akhter, executive director of Dhaka Transport Coordination Authority (DTCA), will have to submit the report within a month.

The authority will not increase metro rail fares until a decision is taken following the committee's report, said ABM Amin Ullah Nuri, secretary of the Road Transport and Highways Division (RTHD).

The decision was taken at an inter-ministerial meeting held at the division yesterday with Nuri in the chair. Representatives of National Board of Revenue, Finance Division, and Dhaka Mass Transit Company Ltd (DMTCL), among others, participated in the meeting.

The meeting was held when confusion arose regarding whether the metro rail fare would be hiked, as NBR decided not to extend the 15 percent VAT exemption for metro rail service after June 30 this year.

The NBR in April decided to cancel the tax exemption it has been given since the beginning of the metro rail operation in December 2022.

But DMTCL, through the RTHD, wrote to NBR to review the decision. But NBR did not extend the exemption order, which means the 15 percent VAT on metro rail fares would be applicable from July 1.

Amid the situation, yesterday's meeting decided to form the technical committee to look after the entire issue, Nuri told The Daily Star last night.

The committee will have representatives from NBR, Finance Division, DMTCL, RTHD, and Bangladesh Computer Council, he said.

"The committee will recommend whether VAT has to be imposed on metro rail service or not, and if imposed, how the VAT would be collected, etc.," he said.

Upon receiving the report, they will sit again and take a final decision in this regard, he added.