NBR reduces import tax on three types of ship recycling machinery
Ship recyclers will be able to enjoy this reduced duty benefit until June 2025
The National Board of Revenue (NBR) has reduced import duty on crawler cranes, magnetic excavators, and hydraulic bulldozers to 1% as capital machinery, down from the previous rate of 27%.
This move, effective from 8 December, aims to promote environmentally friendly practices in ship recycling yards, according to an announcement on Tuesday (10 December). Ship recyclers will be able to enjoy this reduced duty benefit until June 2025.
The NBR stated that the exemption aligns with the government's ratification of the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships in June 2023. The goal is to facilitate the transformation of ship recycling yards into green shipyards, adhering to environmentally sound practices.
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Sekandar Hossain, chairman of KR Group and a prominent figure in the shipbreaking industry, welcomed the decision. "This initiative will support the upgrade of ship recycling yards to meet HKC standards," he told The Business Standard.
Sekandar also mentioned that while ship recyclers had enjoyed a 1% duty rate on capital machinery until the fiscal year 2023-24, these three types of machinery were removed from the list in the last budget, resulting in a sharp rise in import taxes to 27%.
He noted that the increase had placed a significant financial burden on entrepreneurs.
"The new government decision will significantly help us make the yards more environmentally friendly," he added.
