The government has exempted VAT, including advance tax, on importing capital machinery for ship-recycling yards to promote eco-friendly practices under global standards. Effective immediately and valid until 26 June 2025, the exemption aims to convert all ship-recycling yards into Green Ship Recycling Yards within the deadline. Failure to meet this goal will result in a ban on importing ships for recycling in Bangladesh.
The exemption, granted under the VAT and Supplementary Duty Act, 2012, mandates that imported machinery must be used exclusively for shipbreaking and recycling. Importers must submit certification from the Ministry of Industries and a Tk 300 non-judicial stamp undertaking. Machinery cannot be sold or transferred within five years, with compliance overseen by VAT and revenue officers.