The Commerce and Industry Ministry will on Friday meet officials of finance and shipping ministries and industry stakeholders to discuss tax-related issues in the maritime sector.
Officials said that India’s proposed Vessel Sharing Agreements could be discussed at the meeting which is being held amid exporters witnessing high air and shipping freight rates due to the conflict in West Asia.
“Industry has flagged trade-related issues such as tax matters and they would be discussed in the meeting,” said an official.
India’s goods exports have fallen for two straight months, with August witnessing a 13-month low contraction of 9.3%. Traders attributed it to rising shipping costs, the slowdown in China and recessionary trends in the West.
Issues related to tonnage tax, requirements of certificates while remitting freight, container availability and goods and services tax in the shipping sector could be discussed.
Traders have faced challenges such as container shortage, surge in ocean freight rate and shipping cost, shipping delays at the Indian ports, and turnaround time at the ports and the impact of geopolitical uncertainty including the Red Sea crisis which are impacting exports.
Last month, India decided to reduce certain charges at ports and purchase five additional second-hand container vessels by the Shipping Corporation of India to resolve shipping sector-related problems of traders and push exports.