Advisory Council greenlights VAT exemption for imported ships over 5,000 DWT

Importers currently pay 7.5 percent VAT on sea-going ships

The Advisory Council has approved a proposal to exempt value-added tax (VAT) on the import of sea-going vessels with a minimum deadweight tonnage (DWT) of 5,000.

The decision was made on Thursday during a meeting presided over by the Chief Advisor Muhammad Yunus at his office in Dhaka’s Tejgaon.

After the meeting, Press Secretary Shafiqul Alam told a press conference held at the Foreign Service Academy in Dhaka: “This tax exemption will encourage both public and private sectors in Bangladesh to purchase more sea-going vessels.

“It will help boost international trade and promote employment opportunities.”

Currently, a 7.5 percent VAT is imposed on the import of sea-going vessels.