Bhubaneswar, Jan 22: the Union Government in Ministry of Shipping has urged the State Government to exempt Value Added Tax (VAT) on Bunker Fuel used by Indian Flag Vessels operating along the Coast and Vessels on Inland Waterways.
In this regard, Union Minister Shipping, Road Transport & Highways, Nitin Gadkari has written to the Chief Minister Naveen Patnaik to consider the proposal of the Ministry.
In his letter, Gadkari said that MoS is actively considering various measures to promote modal shift of cargo from Rail, Road to Coastal Shipping not only to decongest Roads and Rails but also to harness the higher fuel efficiency of Coastal Movements.
This will also reduce Carbon Footprints and lessen environmental pollution, added Gadkari.
Notably, Union Ministry of Finance has already exempted Central Excise and Customs leviable on Bunker Fuel.
