The national flag carrier oceangoing vessels look forward to tapping big returns in the form of freight charge. The move to increase the number of ships, VAT waiver, withdrawal of income tax and advance trade VAT and making use of at least 50 percent of local ships mandatory have rekindled the hopes of the people related to the oceangoing ship industry to bounce back from bad patch.
To this effect, the government placed the Bangladesh Flag Vessels (Protection) Bill, 2019 in parliament on September 11 to give the industry legal protection. Reportedly, the government has taken measures to provide opportunities to local businesspeople to help them capitalise on ballooning export and imports by minimising dependence on foreign oceangoing ships.
The law focuses on increasing the stake of Bangladeshi ships. This is good news for the merchant shipping companies located in Bangladesh as it will increase the cash flow locally as the law focuses on the uplift of efficiency of local businesspeople rather than relying on the foreign shipping companies. Thus, it will be possible to fetch huge foreign currency, and many employment opportunities will also be created.
It will increase the cash flow locally as the
law focuses on the uplift of efficiency
of local businesspeople rather than
relying on the foreign shipping companies
Reports published in this daily say that the earnings from freight charge might jump up to Tk40 thousand crore from the existing figure Tk10 thousand crore. Moreover, experts opine credit facility with policy support from the government will expand the industry significantly.
Also, it is encouraging to know that foreign ships can carry cargos using No objection Certificate (NoC) received from the Director General (Shipping) only if Bangladeshi ships fail to reach port to carry consignment of any route at a particular time.
The authorities concerned should take note on the shift in balance towards the development Bangladeshi merchant shipping as the import for Bangladeshi flag carrier ships has decreased in spite of a rise in exports and imports in recent times.