Shipping Min Presents Bunker Tax Exemption Case for Long-term Gains
The shipping ministry plans to ask the finance ministry to remove customs duty on marine fuel for vessels carrying cargo for transshipment. According to the shipping ministry, the benefit to the economy from such a step would be manifold compared with the revenue loss for the government. India levies 25-30% customs duty on bunker, or marine fuel. Removing the tax, the ministry and shipping experts feel, would draw big container ships to Indian coasts. Currently such mainline carriers often berth at Colombo and use smaller feeder vessels to carry cargo from and to India. According to rough estimates, the government will have to forego revenue of around Rs.
Source : http://gst.taxmann.com/topstories/222330000000003721/shipping-min-presents-bunker-tax-exemption-case-for-long-term-gains.aspx