INTRODUCTION OF TONNAGE TAX FOR SHIPPING INDUSTRY

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The Rakesh Mohan Committee, constituted by the Government to review Indian Shipping and to recommend measures, has submitted its report to the Government. The Committee has recommended that, recognizing the role of shipping in the national economy, a conducive fiscal regime should be provided so that Indian shipping can be internationally competitive. To facilitate this, Indian shipping companies may be given an option to opt for Tonnage Tax system to be introduced with effect from the financial year 2002-2003. While this step should substantially help to check stagnation in the growth of Indian shipping tonnage, the option to continue to remain within the Corporate Tax regime may also be provided so that those companies which prefer to be under that regime, can do so.

This information was given in the Rajya Sabha today by Shri Shripad Y. Naik, Minister of State for Shipping in a written reply to a question by Shri K. Rama Mohana Rao.