Metro rail gets VAT exemption from ticket sales
This order will be deemed effective from the day metro rail was launched

The government has exempted value added tax (VAT) on metro rail ticket sales till 30 June 2024.
This order will be deemed effective from the day metro rail was launched (28 December 2022), the National Board of Revenue said in a notification on Sunday.
In order to make metro rail more popular in the initial stage of the introduction, it is necessary to make the cost of travel in this public transport affordable, the revenue board said.
As per the current VAT act, any air-conditioned railway ticket is subject to 15% VAT.
However, in March, the metro rail authority wrote to the board seeking VAT exemption, arguing that the duty is not applicable to it as the service has no classification of passengers.
Reviewing that letter, the revenue board exempted VAT on the passenger service of the transport in compliance with the demand of the metro rail authorities.