The industry maintains that the benefit of tonnage tax in 2004 has been eroded by certain taxes which were introduced or the rates of which were enhanced subsequently as shown below:
Deemed benefit computed at varying rates on various types of expenditure which is subjected to normal Corporate Rate of 33.99%
The XI Plan Working Group on Shipping and Inland Water Transport has enumerated the following taxes and taxation practices affecting the competitiveness of Indian shipping companies and the Indian National Shipowners’ Association (INSA) has drawn attention to the same taxes and taxation practices in its presentation to the HLC:
