Abu Dhabi: The Delhi High Court asked the UAE-based cargo companies to approach the government authorities regarding held-up cargo at Indian airports due to newly imposed taxes, a lawyer told Gulf News on Wednesday.
“The court asked the petitioners to give a representation to the government authorities for the permission to clear the held-up cargo without paying newly imposed taxes, while disposing of their petition in this regard,” advocate M.S. Sajeev Kumar, who was part of the legal team that represented the petitioners, said on phone from New Delhi.
The court observed that the authorities might consider their grievances at the earliest, he said.
As Gulf News reported on Tuesday, around 8,000 Indians in the UAE, mostly workers and low-income employees, are still waiting for gifts they sent last month through courier companies to be delivered to families and friends in India.
An overnight change in import rules made by the Government of India has resulted in a 41 per cent import duty being imposed on gifts and other goods for personal use since July 1, which has caused the delay.
Around 250 tonnes of cargo have been held up at the Delhi and Mumbai airports since July 1, according to the Association of Courier Agents that represents 64 cargo businesses in the UAE, offering services to India.
Cargo service operators were not in a position to clear about 200 tonnes of cargo at Delhi airport and 50 tonnes at Mumbai airport due to the 41 per cent tax imposed on June 30 without any prior notification, they said.
As the court did not grant any relief, the cargo companies will clear the goods by paying taxes and collect it from customers, an executive of the association told Gulf News on Wednesday.
“If we don’t clear the goods immediately, we will end up paying storage charges as well. We will inform the customers to pay the additional taxes in the UAE or in India before the delivery of goods,” said Faisal Karat, chairman of the association.
Before July 1, gifts and goods for personal use worth Rs20,000 (Dh1,140) could be sent tax-free thanks to the exemption given by the government as per the notifications issued in 1993.
However, a copy of the notification issued by the Department of Revenue in the Indian Ministry of Finance dated June 30, said it has rescinded the previous notifications of 1993 (which gave exemption on duties), with effect from July 1.
A public notice issued by the Customs Department on July 7 said exemptions on duties would be applicable to gifts and goods for personal use worth Rs2,000 (Dh114) only. Imports of higher value will attract a total of 41 per cent in taxes, comprising 10 per cent basic customs duty, 3 per cent education cess and 28 per cent Integrated Goods and Services Tax (IGST).
Karat said the association would give a representation to the Government of India and continue the efforts to convince the officials to withdraw the newly imposed taxes. “If the government withdraws at least the 28 per cent IGST, it will be a huge relief to customers and the government can get a 13 per cent tax. Now as people are not ready to pay 41 per cent tax, they don’t send goods and the government does not get the intended benefit,” he explained.
Abdul Jaleel, 38, an India working at a restaurant, said he may end up paying around Rs4,000 in taxes for his goods worth Rs10,000 sent from Abu Dhabi on June 23. “I will not take it if the taxes are above Rs1,500. I have already paid Dh330 courier charges and there is no point in paying more money for those goods,” Jaleel said.
