Now, no customs duty on fuel used by ships
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.