The shipping fraternity is peeved with the service tax levy on cargo movement through costal routes and inland waterways in India, the Economic Times reported.
They think it will kill the viability in these segments, which already see minimal demand. Worse, they feel this will jack up prices of essential commodities like fertilisers and tea.
It's a different matter that FM Pranab Mukherjee feels the new service tax levy will not impact the prices of essentials or goods for mass consumption, as suitable exemptions would be provided.
Be that as it may, Association of Shipping Interests in Calcutta (ASIC) chairman HP Nopany is not convinced. "Vessels requiring deeper drafts seldom enter Haldia or Kolkata Port. They usually unload a portion of their cargo at Sagar and Diamond Harbour and take the inland waterways to reach the ports. With a proposed service tax on cargo arriving through inland waterways and coastal routes, the prices of commodities like fertilisers and tea will undoubtedly rise," he said.
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