Govt announces more tax incentives for shipbuilding industry

The government has decided to provide slew of tax incentives including exemption from excise and custom duties on all raw materials and parts used for making vessels. These notifications were issued on November 24.

Aim : To promote domestic shipbuilding industry.

Key facts :

• The raw material used for manufacturing of ships or vessels in Export Oriented Units(EOUs) will be exempt from basic customs duty and excise duty.
• Exemption from basic customs duty and additional duty of customs was available on all raw materialand parts subject to the condition that manufacturing takes place in a custom bounded warehouse.