The National Board of Revenue (NBR) has exempted 15% VAT and 5% advance tax on capital machinery imports for green shipbreaking yards to attract more investment. Previously, businesses paid 26% duty on such imports. However, a 5% customs duty and 1% advance income tax remain applicable.
Of Bangladesh’s 50 shipyards, only six hold green certifications, with 13 in the process of becoming green. Following the Hong Kong International Convention, signed in 2023, only green-certified shipyards will be allowed to import old ships from June 2024, emphasizing safer and environmentally sound ship recycling practices.