Now, no cus­toms duty on fuel used by ships

Cargo Talk - - FRONT PAGE - CT BUREAU

In­dian gov­ern­ment plans to re­move the 25-30 per cent cus­toms duty levied on fu­els used by In­dian ships and ease other lo­gis­ti­cal hur­dles to push for more us­age of the sea route for both do­mes­tic and in­ter­na­tional cargo. The move fol­lows Shipping Min­is­ter Nitin Gad­kari’s plans to de­velop the sec­tor that is seen as es­sen­tial in pro­vid­ing the much-needed con­nec­tiv­ity to trans­port goods man­u­fac­tured in In­dia. “We have man­aged to con­vince the fi­nance min­istry’s rev­enue depart­ment to re­lax the 25-30 per cent tax on fu­els used by trans­ship­ment ships,” a se­nior of­fi­cial said, adding, “The Prime Min­is­ter ap­par­ently was sur­prised that such a levy was be­ing im­posed. He was in favour of re­mov­ing such a tax, which is more of an ir­ri­tant than any rev­enue-gen­er­at­ing propo­si­tion.” Of­fi­cials said the im­me­di­ate im­pact of such a move will be a rev­enue loss of just around ` 60 crore per an­num but its po­ten­tial in driv­ing the use of sea route for mov­ing goods for do­mes­tic and ex­port mar­kets is seen at an ad­di­tional ` 1,000 crore.

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