Asia/Pacific News
India Plans Box Ship Bunker Tax Break
The Indian government has further eased customs and excise duties on bunkers by extending the tax exemptions to ships carrying containers domestically, Reuters reports.
According to separate reports, the Indian Ministry of Finance had previously lifted the duties from IFO 180 CST and IFO 380 CST aboard ships carrying export-import (EXIM) or empty containers in India back in November 2014, but a lack of clarity around the rules meant most domestic ships did not take advantage.
"To get this exemption from payment of duty on bunkers, an Indian container ship had to carry either EXIM containers or empty containers between two ports in India," said the office of the directorate general of shipping.
"But, there are no Indian ships that [exclusively] carry exclusive EXIM containers or empty containers.
"Local fleet owners didn't want to get into any problem because of this."
The move is reportedly part of India's plans to free up its congested roadways and reduce carbon emissions, with the Indian government having also reportedly announced earlier this month that it would be promoting renewable energy, clean coal technology, and planting more trees.
However, Indian shipowners have reportedly been against relaxing the duties to allow more foreign players access to the Indian market, especially as Indian and foreign players are taxed differently.
"Rather than relaxing cabotage restriction, either the foreign shipping lines should flag in India and pay the taxes paid by the Indian shipping lines or the taxes on Indian shipping lines should be waived," said the Shipping Corporation of India.
Ship & Bunker reported in July that the Indian government would be easing customs duties on bunker fuel in order to boost economic growth.
