Cruise industry boost for India
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It said the cabinet would soon take up the cruise shipping policy, which provides ‘zero taxation regime’ for cruise ship operators. The policy would also allow extension of cabotage relaxation, which allows foreign flag vessels moving cargo between two Indian ports for another 10 years.
The report said the government has also planned to exempt cruise operators from income tax, excise duty, customs duty, corporate tax and service tax, which account for about 36% of their total sales value.
It said the move was aimed at attracting foreign cruise ship operators which have so far avoided India because of its prohibitive tax regime.
With the new rules in place, the government is expecting cruise passenger landings to rise from the current 243,000 to one million by 2010.
The report added that state governments have been urged not to levy entertainment tax on shows and activities on board the vessels. It also called for faster immigration clearance so that they are completed in just one hour of disembarking of cruise passengers from the ship.
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