VAT Waiver on Vessel Imports: Opportunity for Growth with Rigorous Compliance Conditions

The government has exempted VAT on importing ocean-going vessels of 5000 deadweight tonnage or more.
The policy aims to boost Bangladesh’s shipping sector, increase foreign exchange earnings, and create local jobs.
Importers must comply with strict conditions, including clearance from the National Board of Revenue.
Vessel earnings and expenditures must be routed through foreign currency accounts in Bangladeshi banks.
Annual proof of foreign exchange earnings is required.
Oil tankers must meet international safety standards.
At least 70 percent of crew members must be Bangladeshi.
Vessels must be registered under the national flag and operate for at least three years.
Vessels must not be older than 25 years at the time of import.
Resale or transfer is prohibited for three years, except in special cases with NBR approval.
The policy balances fleet expansion with national interest protection.
Local crew requirements aim to build maritime expertise.
Strict compliance monitoring is essential to prevent misuse.
NBR can recover full VAT in case of violations.
The exemption is valid until June 2026 and replaces an earlier order.
Success depends on strict adherence, transparent enforcement, and industry accountability.

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.