Liquid bulk sector calls for tax, duty rationalisation

Written by Commodities Bureau | Mumbai | Updated: Jan 15 2009, 04:26am hrs
The domestic liquid bulk industry has called for removal of operational constraints, stamp duty on transfer of shipping documents, cess on edible oil transactions, rationalisation and systemisation of customs and excise procedures and a complete overhaul of the available infrastructure.

Some of the critically important liquid bulk commodities include mineral oil (crude and petroleum), edible oil; (for food purposes), industrial oils for a variety of application, and various chemicals including agro-chemicals and specialty chemicals.

Over the next 5-10 years, India is likely to become a major importer of a wide variety of liquid bulk commodities such as crude oil, vegetable oil, industrial oil, chemicals. Liquid bulk cargoes are integral to the countrys economic development, said Jayant Lapsia, president, All India Liquid Bulk Importers and Exporters Association (AILBIEA).

AILBIEA is an association of traders, manufacturers, importers, exporters and service providers engaged in the business of liquid bulk. The primary objective continues to be that of playing a significant role of a catalyst between various port authorities, governmental and revenue departments and provide more solidity and clarity in ensuring smooth and fair operations.

India is likely to become a key importer of bio-fuels like ethanol and bio-diesel in the future. In such a scenario, it is imperative for our ports infrastructure to be up to date and technologically world class, and also, for the customs to change their drive into facilitation gear, he said. The association has called for an urgent need for various taxes and policies to be rationalised and also for the modernisation of the facilities at the Mumbai Port to make the industry globally competitive.