THE Indian government is looking to reduce the tax on marine diesel oil, which represent 40 per cent of coastal shipping costs, by building a consensus to bring it under the Goods and Services Tax (GST), reports New Delhi's Liv Mint.
The goal is to reduce costs for coastal and inland shipping to help companies become more competitive and attract more cargo for this less-polluting mode of transport.
The Ministry of Ports, Shipping and Waterways (MOPSW) will ask the Ministry of Finance and states to consider reducing taxes and bringing bunker under GST.
Revenue loss from the exercise will be minimal as marine fuel consumption accounts for about one per cent of India's fuel consumption. Even if states lose some revenue, they could be compensated for this under GST.
India's demand for petroleum products including petrol, diesel, liquefied petroleum gas (LPG), aviation turbine fuel (ATF) and naptha is expected to touch a new high of 238.95 million tonnes this fiscal year. At this level, consumption of marine oil would be around 2.4 million tonnes.DATELINE = Monday, October 7, 2024
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The goal is to reduce costs for coastal and inland shipping to help companies become more competitive and attract more cargo for this less-polluting mode of transport.
The Ministry of Ports, Shipping and Waterways (MOPSW) will ask the Ministry of Finance and states to consider reducing taxes and bringing bunker under GST.
Revenue loss from the exercise will be minimal as marine fuel consumption accounts for about one per cent of India's fuel consumption. Even if states lose some revenue, they could be compensated for this under GST.
India's demand for petroleum products including petrol, diesel, liquefied petroleum gas (LPG), aviation turbine fuel (ATF) and naptha is expected to touch a new high of 238.95 million tonnes this fiscal year. At this level, consumption of marine oil would be around 2.4 million tonnes.DATELINE = Monday, October 7, 2024
SeaNews Turkey