Bangladesh scrapping tax likely to be postponed

2017 budget to hit Pakistan, Bangladesh scrapping sectors

The attempt to reverse the recently imposed 15% value added tax (VAT) on ships being sent to Indian ship-recycling markets will likely be successful, according to GMS, a cash buyer of ships for recycling.

The announcement was made after the Bangladesh Shipbreakers Association (BSBA) voiced their concerns to the highest authorities in government in an attempt to reverse VAT on incoming ships.

Additionally, the Finance Ministry said VAT will now be postponed for at least another two years, which should see prices remain at par with those seen in the first quarter of the year.

In early June, ship-recycling sectors in Pakistan and Bangladesh witnessed a decrease in LDT price after the respective countries released their 2017 budget announcements.

READ ALSO  Clearing agent accused of stealing N2.27m 

The Pakistani budget first brought falls of about USD 10/LDT, “as rumors of an even worse fate for the Bangladeshi market surfaced and were eventually confirmed” by the announcement of their budget.

The Pakistan Shipbreakers Association (PSBA) is due to meet in the coming week in order to address some of the concerns arising from their recent budgetary changes affecting their industry, GMS informed.    

 

 

We pay for your stories! Do you have a story for Ships & Ports? Email us at [email protected] or call 0810 359 4873. You can also WhatsApp us here. We pay for videos too. Click here to upload yours. 

READ ALSO  Saudi shuts major oil pipeline after drone attacks

 

Copyright Ships & Ports Ltd. Permission to use quotations from this article is granted subject to appropriate credit given to www.shipsandports.com.ng as the source.