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Ship owners seek tangible incentives

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By RANOBA BAOA

The inter-island shipping operators are pleading with Government to offer tax  incentives similar to that offered for the bus industry in Fiji.
This was one of the highlights by ship owners during the Consultations on Shipping Fares and Freight Charges at De Vos on the Park yesterday.
While the bus industry enjoyed a number of incentives laid out by Government on zero-rated tax incentives on the importation of buses, the meeting revealed that this was not the same for the shipping companies.
Owner of the MV Lomaiviti Princess, Goundar Shipping Limited managing director George Goundar,  said: “Government should look at incentives when we buy ships-there should be a total duty-free. Like now they say it’s 32 per cent for existing company. I think they should look at the bigger picture.
“Make it fair for all the existing ship owners and new ship owners for no duty on the ships. We will pay VAT (value added taxt) but zero-duty because we are here to support the marine industry and the outer islands.
“As a ship owner, we are keeping our costs down..
“As stakeholders, we look forward to working with the Commerce Commission and the other bodies.
Deputy Secretary for Transport and Public Utilities Malakai Tadulala said: “These are very valid grievances which the operators have raised, and they will be taken into consideration by the policy makers.
“The ministry made a review of shipping fares and freight charges and we have found that it has been outdated.
“Therefore this consultation will seek to address the grievances of the stakeholders.”
The consultation process was a way to connect all stakeholders to benefit by way of taking into account their concerns as a collective voice.
The efforts and resources of all stakeholders was such for a clear implementation plan to be developed by the working committee for cabinet’s endorsement.
The Fiji Commerce Commission made its submission to Government on the review of the shipping fares and freight charges.
It was noted during the consultations that stakeholders were unhappy of the review presented. However, the Commerce Commission noted that it was not the final product and submissions for the review were still welcomed.
Members of the shipping industry and those linked to it were invited to hand in their submission no later than May 21. The consultations continue in the Western and Northern division this week.


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