Many cargo handlers in Bahrain have stopped accepting shipments to India after the country introduced Goods and Service Tax (GST) earlier this month. Until last month, shipments worth 20,000 Indian rupees (BD116.500) from the GCC were not taxed, but under the new rules, a levy of up to 40% will have to be paid.
Tonnes of cargo from the Gulf are reportedly stuck at New Delhi airport, while companies from the GCC try to negotiate with officials in India on the taxes. Until such time as the existing shipments are not delivered, cargo handlers in Bahrain are not accepting new consignments.
“We cannot ask customers to pay taxes on goods they hand over to us before June 30,” Supernet cargo owner Subair Kannur told the GDN. “Before the tax it was costing us at least BD1 per kilo to deliver the goods, but now with the GST, which we learn may be up to 40%, and other charges, the cost could go up to BD1,600 per kilo,” he added.