New Delhi, July 10 (KNN) The Shipping Ministry in an appeal before the GST council has asked for an exemption under the newly implemented Goods and Services Tax (GST).

Citing the taxation rules on cruise tourism in other countries, the Ministry informed that major cruising countries including UK, USA and Germany imposes a zero per cent tax rate on domestic cruises. Therefore an exemption under the GST would help the sector.

It further said that the sector at present is at a very primitive stage and an exemption in tax would help the sector grow significantly in the country.

The Ministry also cited the Finance Act 1994 according to which transportation of passengers (with or without belongings) by inland waterways is exempted from taxation. Therefore cruise ships must also be exempted from tax along similar lines.

Earlier Nitin Gadkari, Shipping, Road Transport and Highways minister spoke of cruise tourism as an important emerging sector in the country that is likely to generate a lot of employment. He also said that appropriate steps will make the sector emerge as a game changer for the Indian economy.

As per the official data, the country recorded 1.76 lakh cruise passengers in 2016-17, this is expected to grow to 15 million in next 15 years with new cruise ports being developed along with the existing ports in the country. (KNN/ DA)