New Delhi - Domestic shipping companies stand to gain from the expansion of tonnage tax scheme proposed in the new Income Tax Bill, 2025. This relaxation has been extended under special provisions relating to income of shipping companies. Representatives from domestic players said the bill once approved will improve cash flow and viability of both inland, and coastal shipping operations.

“The bill proposes a major change in Indian tonnage tax law. Inland vessels that were earlier kept out of the ambit of tonnage tax scheme will now get the benefits,” Rakesh Singh, Secretary ICC Shipping Association said.