16 March 2018
BANGLADESH: VAT Exempted for Imports of Ships Exceeding 5,000 Dead Weight Tonnage
Ships of more than 5,000 Dead Weight Tonnage (DWT) are now exempt from the payment of value added tax (VAT) when imported into Bangladesh. To be eligible, imported vessels should not be more than 15 years old. Once imported, the vessels must be used in the transport of sea freight for at least five years, during which ownership should not be transferred. Further, they must be locally registered and 70% of their crew must be Bangladeshi nationals.
Vessel importers are required to provide proof of their foreign currency earnings to the local VAT office in the form of a bank certificate every year. Pre-approval for the VAT exemption from Bangladesh’s National Board of Revenue is also required. The VAT exemption comes as part of the government’s bid to boost the maritime transport sector.