India-flagged vessels carrying domestic containers along India’s coast will no longer have to pay customs and production tax on bunker fuels as the country tries to decongest roads, harness the higher fuel efficiency of coastal movements, and cut carbon emissions.
Back in November 2014, India’s Department of Revenue exempted customs and excise duty leviable on bunker fuels used by India-flagged vessels for transportation of export-import and empty containers between two ports in India.
The exemption has further been extended by Department of Revenue on September 17, 2015 to India-flagged ships carrying a mix of export-import, empty and domestic containers.
”The growth of coastal shipping in India has been hindered by the levy of customs and central excise duty on bunker fuels which raises cost of transportation,” India’s Ministry of Shipping said in a statement.
”This tax incentive for transportation along the coast will go a long way in enhancing Indian tonnage as well as in promoting development of transportation hubs in India.”