The National Board of Revenue (NBR) has extended the value-added tax (VAT) exemption on Metro Rail services until June 30, 2026, aiming to promote the use of the environment-friendly mass transit system.

According to an official release issued on Wednesday, the government earlier granted a VAT exemption on Metro Rail services.

The existing exemption is scheduled to expire on December 31, 2025.

In the greater public interest and following a recommendation from the Ministry of Road Transport and Bridges, the government decided to continue the VAT waiver for a further six months.

A gazette notification to this effect was issued on December 23, 2025, extending the exemption up to June 30, 2026.

The move is expected to help keep Metro Rail fares affordable for city dwellers while encouraging a shift from private vehicles to mass transit, thereby reducing traffic congestion and carbon emissions in the capital.