VAT waiver on metro rail extended till June 2026

The government has extended the value-added tax (VAT) exemption on metro rail services until June 30, 2026, aiming to keep fares affordable and encourage wider use of the mass transit system.

The existing VAT waiver was set to expire on December 31, 2025.

The National Board of Revenue (NBR) said today that the extension was approved through a gazette notification issued on December 23, following a recommendation from the Ministry of Road Transport and Bridges.

According to the NBR, the decision was taken in the public interest, considering the metro rail's role as an environmentally friendly and modern public transport system.