Foreign ships have begun turning to Sri Lanka and Bangladesh for refueling, prompting the petroleum ministry to seek an exemption from integrated goods and services tax (IGST) on bunker fuel.
The ministry’s view is that no IGST should be levied on these foreign vessels as they only stop to refuel and move on, a government official aware of the development said.
“The ministry is concerned… It could in the long run impact the overall business itself,” the official said.
The migration to neighbouring ports that have lower taxes would dent the country’s exports of petroleum products. Read More…