Indian seafarer income tax ruling to be challenged

Indian seafarer income tax ruling to be challenged

A surprise move to chase Indian seafarers for income tax will be challenged in the coming days at the Kolkata High Court.

The Maritime Union of India (MUI) and the National Union of Seafarers of India (NUSI) are protesting a ruling by the Kolkata income tax tribunal demanding seafarers pay 30% income tax, a move that could shatter the nation’s standing as a leading provider of crews to the world’s merchant fleet.

Up until now, Indian seafarers who spent more than six months of the year at sea were exempt from paying income tax.

“India with 12% of the world’s population has just 7% of the worldwide seafarers’ market whilst much smaller Philippines has grabbed a 20% global share. Additionally, the Philippines’ government does not levy income tax on the remuneration earned by the country’s seafarers,” said NUSI’s general secretary Abdulgani Serang.

“Tax-free income has always been an added attraction for the young Indian aspirants choosing a career at sea. The tribunal’s decision is a major disappointment for them,” he said in a release.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

Related Posts

1 Comment

  1. Avatar
    JOSEPH
    August 22, 2016 at 11:03 am

    HA! HA! HA! TIME FOR SEAFARERS TO CHANGE THEIR PROFESSION TO POLITICIANS, FOR A TAX FREE INCOME WITH RETIREMENT BENEFITS AND MANY PERKS, PAID HOLIDAYS, AND EVERY DAY THE POLITICIANS GET TO SLEEP WITH THEIR WIVES.