Unlocking Bangladesh's blue economy: the strategic role of fiscal policy and the National Board of Revenue

The concept of the Blue Economy has gained increasing importance in Bangladesh’s development discourse following the resolution of maritime boundary disputes and the country’s strategic positioning in the Bay of Bengal. The Blue Economy refers to the sustainable use of ocean and coastal resources for economic growth, improved livelihoods, and environmental preservation. 

For Bangladesh, this encompasses marine fisheries and aquaculture, ports and shipping, shipbuilding and ship recycling, offshore energy, coastal and marine tourism, and emerging areas such as marine biotechnology and ocean-based services.

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While sectoral potential is widely acknowledged, the realisation of the Blue Economy depends largely on the policy and fiscal environment that governs investment, compliance, and sustainability. In this context, fiscal policy and particularly the role of the National Board of Revenue (NBR) is central. Beyond revenue collection, NBR has the capacity to shape investment behaviour, promote formalisation, and support sustainable development through carefully designed tax, VAT, and customs policies.

Bangladesh’s marine territory offers significant economic opportunities that can diversify exports, create employment, and support inclusive growth in coastal regions. Traditional reliance on land-based economic activities has increasingly come under pressure due to population density, climate vulnerability, and resource constraints. The Blue Economy presents an alternative growth frontier, particularly for a country with an extensive coastline and a large population dependent on marine and coastal livelihoods.

However, Blue Economy sectors are often capital-intensive, technologically complex, and subject to long gestation periods. Investments in ports, offshore energy, marine research, or sustainable fisheries require policy predictability and long-term fiscal certainty. Without a supportive tax regime, private investment, both domestic and foreign, remains limited, and informal or environmentally harmful practices tend to persist.

In the context of the Blue Economy, NBR’s responsibilities extend to three interrelated areas. First, it acts as an investment enabler by providing fiscal incentives and predictability for long-term projects. Second, it balances revenue generation with sustainability and environmental protection. Third, it supports gradual formalisation of economic activities, particularly in small-scale fisheries and coastal services, where informality remains widespread.

For Blue Economy sectors, fiscal certainty is often more critical than giving incentives. Investors require assurance that tax policies will not change unpredictably during the lifecycle of large marine infrastructure or offshore projects. NBR, therefore, has a key role in ensuring stability, transparency, and coherence in fiscal policy. 

It is widely mentioned that there is no consolidated fiscal framework that addresses income tax, VAT, and customs issues for Blue Economy activities in a coordinated manner. Investors and operators often have to navigate multiple laws and administrative instruments, often leading to inconsistent interpretation and enforcement.

To unlock the potential of the Blue Economy, several policy actions are required. The Blue Economy should be officially recognised as a priority sector within fiscal legislation and policy documents. Time-bound tax incentives, reduced corporate tax rates, or targeted tax holidays could be introduced for strategic marine activities. Institutional coordination is equally important. 

A dedicated fiscal coordination mechanism involving NBR, the Ministry of Finance, the Ministry of Shipping, the Ministry of Fisheries and Livestock, and environmental authorities would help ensure coherence between development objectives and revenue policies. 

Bangladesh may also develop a comprehensive Blue Economy tax incentive package that integrates income tax, VAT, and customs duty measures. This could include green tax credits, accelerated depreciation for marine infrastructure, and VAT reforms tailored to service-based marine sectors.

The FY2026–27 National Budget signals a strategic shift towards unlocking Bangladesh's blue economy by combining targeted fiscal incentives with public investment to strengthen fisheries, aquaculture, and seafood exports. 

While the budget does not introduce direct tax concessions for shrimp cultivation, it lowers production costs by extending zero-duty facilities to additional fish feed raw materials and enhances the competitiveness of export-oriented seafood processors through expanded customs bonded warehouse facilities. 

To protect domestic value addition, a 20% supplementary duty has been imposed on imported pangas fish fillets. Complementing these fiscal measures, the government has allocated Tk 200 crore for blue economy research and development, announced initiatives to expand deep-sea fishing and commercial seaweed cultivation, modernise fisheries infrastructure, and promote fisheries insurance. 

These interventions reflect a value-chain approach aimed at increasing productivity, encouraging investment in processing, diversifying marine resources, and supporting the government's target of achieving $1 billion in fisheries exports by 2030.

The future of Bangladesh’s Blue Economy depends not only on natural endowments but also on the quality of its fiscal and policy framework. The National Board of Revenue has a central role in shaping this future by moving beyond traditional revenue collection towards a more enabling, coordinated, and sustainability-oriented approach. 

With coherent policies, stakeholder engagement, and long-term fiscal vision, the Blue Economy can become a powerful driver of economic diversification, environmental protection, and inclusive growth. A well-designed fiscal roadmap can transform Bangladesh’s maritime potential into a lasting national asset for generations to come.

The writer is the additional commissioner and first secretary of the National Board of Revenue.