February 9, 2006

Indian seafood exporters to shut down for three days
 

350 Indian seafood processors and exporters, members of the Seafood Exporters Association Of India (SEAI) will be closed for three days from Feb 13 to protest a recent amendment to the Income Tax Act. During this period, they would not be engaged in any production or purchasing activity.

The tax amendment converts duty entitlement passbook (DEPB) income on export turnover above Rs.100 million (US$2.2 million) as taxable income.

The three-day strike will turn indefinite if it does not yield any results, SEAI president Abraham Tharakan said.

Thakran said the amendment was cruel and added that benefits the exporters gained from their sales were already passed on to aquaculture farms and fishermen.

The industry would be liable for taxes of Rs.5 billion (US$113 million) as the new amendment is backdated from April 1, 1997, when the DEPB came into being.