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Indian breakers face greater tax scrutiny

Indian breakers face greater tax scrutiny

Mumbai: In a move that could have drastic implications for Asia's largest shipbreaking industry located at Alang, the Central Excise department has written to the Union Ministry of Finance (MoF) to amend regulations and bring all inputs from the ships arriving at the yard for scrapping, under the ambit of excise duty.
The move follows shipbreakers in Alang going on a strike on December 21 after the Central Excise issued them a notice to produce ship-wise breakups of the material obtained from each dismantled ship.
"We have requested to bring scrap and goods under 100 per cent duty. We have suggested to remove the non-dutiable clauses so that the shipbreakers pay duty on all materials without any exemption. Further, we have asked for a viable decision to control the amount of credit shipbreakers take from the government," a spokesperson for Central Excise explained. Currently breakers pay 70% duty.
India's breakers have been making hay while their greatest rivals, Bangladesh, have been hampered by an ongoing legal tussle that has stopped most recycling activity there. [03/01/11]

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