India axes tax on bunkers for coastal container shipping

India has removed customs and excise duty on bunker fuels for India-flagged vessels in coastal and domestic trades in an effort to promote the carriage of containers by water rather than on its congested roads.

The tax exemption is applicable to IFO 180 CST and IFO 380 CST bunker fuels for Indian vessels transporting export-import (EXIM), empty and domestic containers between two ports in India, the government 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,” the government said.

India-flagged vessels carrying EXIM and empty containers between two Indian ports have been exempt from paying customs and excise duty on bunkers since November 2014. This exemption has now been extended to carriers transporting domestic containers.

India is the world’s third largest polluter and is looking for ways to cut its greenhouse gas emissions.


Holly Birkett

Holly is Splash's Online Editor and correspondent for the UK and Mediterranean. She has been a maritime journalist since 2010, and has written for and edited several trade publications. She is currently studying for membership of the Institute of Chartered Shipbrokers. In 2013, Holly won the Seahorse Club's Social Media Journalist of the Year award. She is currently based in London.
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