Asia/Pacific News
Indian Shippers Call for India to Extend Bunker Duty Exemption
The Indian Coastal Conference Shipping Association (ICCSA) has called on the Indian Government to extend the temporary bunker duty exemption currently enjoyed by Indian box ships, Indian media reports.
Earlier in November, the Indian government exempted export-import shippers from bunker duty until May 2015 as well as those handling empty containers in Indian ports for the same period.
"This has been a long-standing demand of Indian ship owners and operators seeking a level playing field with foreign flagged vessels, which do not have to pay customs duty on bunker fuel when they move export-import containers," said ICCSA President SV Subhedar.
Bunker duty increases fuel costs for Indian shippers by around 10 percent, according to a senior official at the Shipping Corporation of India (SCI).
But the temporary move is not enough to stimulate investment in the industry according to industry commentators.
"Any policy intervention to induce investment needs clarity on the continuation of such dispensation," said Managing Partner of Beekay Business Consulting, BK Mandal.
"The exemption is for a short period of six months and that is not long enough to attract fresh investment in this sector.
"I hope the Government will review this aspect."
In September the Indian Government announced it will exempt vessels carrying export-import cargo from a 25 percent marine fuel duty.
