Reduce customs duty on ships to Alang:Gujarat to centre

The Gujarat Government has requested the Centre to reduce the customs duty on the ships coming at Alang for dismantlement.Alang town in Bhavnagar district houses the world”s largest ship-breaking yard.

The request was made to Union Finance Minister Pranab Mukherjee in Delhi today, Gujarat Minister of State for Finance Saurabh Patel PTI tonight.

“While participating in a pre-Budget meeting, I apprised him (Mukherjee) that Pakistan, Bangladesh and China have entered ship-breaking business as it generates large employment. China does not charge any customs duty where as Bangladesh and Pakistan levy nominal customs duty on ships coming for dismantlement,” he said.

The Centre charges 5 per cent customs duty, which is very high and results in diversion of traffic to neighbouring countries, he said.The Government should reduce the duty to help rejuvenate this business and increase employment and related activities, Patel said.