Union Budget 2025: FM proposes Extension of Tonnage Tax Scheme Benefits to Inland Vessels
Presently, the tonnage tax scheme only covers sea-going ships. The government is planning to extend these benefits to inland vessels as well
Budget 2025 India – Budget 2025 Highlights – Budget 2025 News – Budget 2025 Updates – Budget 2025 Impact – Finance Minister Budget speech 2025 – Impact of Budget 2025 – Budget 2025 – tax reliefs – Taxscan
Budget 2025 India – Budget 2025 Highlights – Budget 2025 News – Budget 2025 Updates – Budget 2025 Impact – Finance Minister Budget speech 2025 – Impact of Budget 2025 – Budget 2025 – tax reliefs – Taxscan
During the Union Budget 2025-26, the Finance Minister, Nirmala Sitharaman has proposed the extension of the tonnage tax scheme benefits to inland vessels. Currently, the tonnage tax scheme is only available to seagoing ships only.
This is the eighth time the FM is presenting her budget, which is indeed a record for Indian FM. It is a much-highlighted fact that flexibility in policymaking is the need of the hour.
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The FM stated that the benefits of the existing tonnage tax scheme are planned to be extended to inland vessels registered under the Indian Vessels Act of 2021 in order to stimulate inland water transport in the country.
Presently, the tonnage tax scheme only covers sea-going ships. The government is planning to extend these benefits to inland vessels as well. And it is to be noted that to qualify for this extension, the vessels must be registered under the Indian Vessels Act, 2021.
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This step is aimed at boosting inland water transport across the country. It is believed that expanding the scheme could encourage more investment in waterway infrastructure.
Overall, it’s a move towards a more sustainable and efficient transport system.
The budget contains a comprehensive roadmap for the coming year. The FM in her budget speech, the minister addressed the 6 sectors the Union budget is focusing on. The minister also said that she will be presenting the new Income Tax Bill next week.
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According to the FM, with the first quarter of the 21st century getting over, the Viksit Bhart, scheme is marching forward confidently.
The main focus is being emphasised on taxational reforms. The major focus is on simplifying the tax structure to enhance compliance and reduce litigation. The minister also said that she will be presenting the new Income Tax Bill next week.
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