VAT on metro rail takes effect today
It is not necessary to hike ticket prices to implement VAT, says a senior VAT wing official
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The value-added tax on metrorail ticket prices has come into effect today.
The Metrorail authority has to pay 15 per cent VAT on ticket prices by August 15, 2024, for the month of July 2024.
Despite the VAT taking effect this day, the prices of tickets have remained unchanged.
Asked about this, a senior official of the VAT wing said it is not necessary to hike ticket prices to implement VAT.
“No matter if ticket prices have increased or not, VAT has come into effect today, July 1, 2024,” he added.
VAT on metrorail tickets was exempted for one year to facilitate its smooth launch, which expires on June 30, 2024, he said.
The VAT has been imposed on the basis of the Prime Minister’s consent, he said.
Considering the dire need for domestic revenue mobilisation, the government has been compelled to take some unpopular measures like this.
Currently, all public transport with air conditioning is under the purview of VAT.