The Hindu : Shipping Ministry moots tonnage tax

Online edition of India's National Newspaper
Saturday, Apr 12, 2003

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Shipping Ministry moots tonnage tax

By Our Staff Correspondent

MANGALORE APRIL 11. The Union Ministry of Shipping proposes to introduce a globally-accepted norm of "tonnage tax'' for shipping by amending the Act in the winter session of Parliament, the Union Minister of State for Shipping, Dilip Gandhi, told reporters here on Thursday. This will be a departure from the corporate structure of taxation for the sector.

Mr. Gandhi said efforts to introduce an amendment to the Act in the current session of Parliament did not come through due to certain technical reasons. The proposal in this regard was pending before the Union Finance Ministry. His Ministry would take it up at the appropriate level once it received the clearance. It had proposed to increase its share in financing proposals from interested States to 90 per cent from the existing 50 per cent.

He noted that the Ministry was not receiving many proposals for development of inland waterways under the current arrangement of funding as most States found it difficult to mobilise resources.

He pointed that there was a network of 14,500 km of both coastal and inland waterway systems in the country and added that the proposed interlinking of rivers would further enhance this potential.

The Ministry was keen on developing cruise and passenger services and was also planning to start exclusive container terminals in major ports. It was not averse to letting private parties develop such terminals, which had the potential to develop the economy of the region.

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