Thursday, March 28, 2024 | Ramadan 17, 1445 H
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EDITOR IN CHIEF- ABDULLAH BIN SALIM AL SHUEILI

Cargo worth thousands of rials pile up in Muscat due to new India tax

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Thousands of parcels bound for India are piling up at the cargo offices across the Sultanate and other GCC countries, thanks to that country’s new tax which came into effect from this month.


The cargo agents are either putting on hold receiving of consignments or warning customers the delivery of their parcels could be delayed.


With the cargo agencies going slow in receiving and delivering goods, jobs of hundreds of both locals and expatriates are at stake.


“Many cargo companies have either suspended business or are warning clients of a delay in the delivery due to new Indian regulations on the import of goods,” says Basheer Mohammed, Operations Manager, Al Namani Cargo, Ruwi.


Agents’ grouse is that the Goods and Services Tax (GST) introduced last week has not only stopped the free cargo allowance of Rs 20,000 (RO 114 approx) which has been in existence since 1993 and amended in 2016, but also stipulates a 41 per cent levy on the value of the cargo despatched.


This includes a 10 per cent Customs Duty, 3 per cent cess and a GST of 28 per cent.


“In these circumstances, it’s near impossible to run business. We have visited the Indian Embassy and lodged our concerns. We have filed a case against the rule,” said Mohammed Unni, Managing Director.


Representatives of Oman’s cargo agents — Nazer from Speedway, Rasheed Ali of Sea breeze, Abdul Rafeeque from Alhind and Sadique of Rajab Logistics — along with their advocate from the Delhi High Court met the authorities concerned last week. “We are awaiting a positive reply on Sunday or Monday to our request for maintaining status quo on goods despatched before the new rule took effect,” says Mohammed Ali of Rajab Cargo.


There has been a lone consolation for the cargo agents. The Airports Authority of India (AAI) has said it will not collect any demurrage charges on pending goods until July 9.


Agents are worried the current impasse will have repercussions. They feel the purchases by Indian expatriates in the country would come down.


Not just that. With the cargo movement hit, the airlines — which transport bulk of the cargo — will be severely affected, felt the agents.


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