Perishables shippers in India have begun to feel the pinch from the additional Goods and Services Tax (GST) that became applicable on freight charges from 1 October. Some trade groups, representing reefer shippers, have threatened to suspend exports, saying freight charges are “unaffordable” as a consequence of this tax: 18% on air freight costs; and 5% on ocean.
The All Kerala Vegetable and Fruits Exporters’ Association, a southern Indian body, has urged members to halt exports from today to exert more pressure on the government to return GST relief, which had existed by way of ad-hoc exemptions since 2017.
The source said domestic reefer exporters were now unable to compete with their counterparts from other low-cost countries like Sri Lanka, Pakistan and Bangladesh.
Source: theloadstar.com