FROM BUDGET SPEECH 2014.... 35.0 Shipping Economy 35.1 Honourable Speaker, we are in the process of procuring several ships to expand Sri Lanka Shipping Corporation and to improve shipping related capabilities of the country. I also propose to expand maritime education to ensure professional and skills development required to improve the shipping industry. As such, tax credit will be given to all local ship operators as well as shipping agents for foreign ships who engage in training and professional development activities in the shipping industry. To boost related activities, I propose that services related to the shipping industry will be taxed at 12 percent on par with the tax rate applicable to export income earnings. A separate allocation will be provided to set up a state-of-the-art Ocean University to award degrees etc. in a range of subjects and skills associated with maritime education. In order to promote the shipping economy in a more structured manner, I also propose to set up a fully pledge Merchant Shipping Authority by introducing timely amendments to the Merchant Shipping Act. In order to prevent monopoly pricing in the shipping trade, no shipping line will be permitted to levy terminal handling and other charges in addition to freight and specified international charges for container cargo. Relevant prohibition will be made effective through amendments to the Finance Act, effective from January 2014.
Posted on: Thu, 21 Nov 2013 23:47:19 +0000
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