Judicial intervention sought by MUI-NUSI combine to stall an IT order on seafarers taxation

The Maritime Union of India (MUI), the only union representing Indian Merchant Navy officers since 1939, and India’s oldest maritime trade union, National Union of Seafarers of India (NUSI), have jointly decided to challenge the recent judgment of income tax tribunal in The Kolkata High Court next week.

An unprecedented judgment delivered recently by the Kolkata income tax tribunal has shattered the workforce of the Indian maritime industry. The tribunal’s judgment now mandates Indian merchant navy workforce to pay taxes in India. About 1.3 lakh Indian seafarers, who were so far exempted from paying the taxes in India, will get affected by the tribunal’s recent judgment.

Indian seafarers sailing offshore on ships for more than 182 days in a year so far enjoyed the benefits conferred to the non resident Indians and hence were exempted from paying income tax in India for their income earned overseas.

Mr. Amar Thakur, General Secretary, MUI, said: “We have hired eminent lawyers and tax consultants to strongly oppose the Kolkata income tax tribunal’s verdict in ‘The Kolkata High Court’. We will approach the Honorable Court early next week and challenge the income tax tribunal’s order in the interest of the Indian maritime industry”.

MUI and NUSI have also sought an immediate intervention of the Government of India.

Maritime experts believe that Kolkata income tax tribunal’s recent judgment is a huge blow to the Indian Ministry of Shipping’s ‘Maritime Agenda 2020’ that emphasis on increasing the global share of Indian seafarers. India with 12% of the world’s population has just 7% of the world-wide seafarers market whilst Philippines with 12% of the world’s population has grabbed 20%global share. And, Philippines’ Govt. does not levy income tax on the remuneration earned by the country’s seafarers.

“Tax free income has always been an added attraction for the young Indian aspirants choosing a career on the seas. The tribunal’s decision is a major disappointment for them,” said NUSI General Secretary, Mr Abdulgani Serang. (OVER)