Govt withdraws VAT-based diesel subsidy for trawlers

PANAJI
In a move that could raise the heckles of the 1,000-plus strong trawler owner community, the State government has discontinued the VAT-based diesel subsidy to fishing trawlers with effect from November 30 last year.

A notification conveying the approval of the State government to discontinue the subsidy was issued by Fisheries Director Dr Shamila Monteiro.

Monteiro, who also doubles up as ex-officio joint secretary (fisheries) said the government’s decision to discontinue “The Goa Value Added Tax based subsidy on HSD Oil (diesel) consumed by Fishing Vessels Scheme was taken in November last.

“This order is issued with the approval of the government, dated  8-11-2022,” Monteiro’s notification issued on May 23, said.

The notification also said that the diesel subsidy is being discontinued retrospectively from November, the date the State government granted approval to the decision.

Goa has 1,000-plus registered fishing trawlers and many of their owners claimed this VAT-based diesel subsidy to offset costs, which according to one estimate is nearly 60 per-cent of the entire fishing costs.

The only conditions the trawler owners had to fulfil was to be a member of one of the many fishermen’s societies. The second made it mandatory that the diesel purchased should be from pumps run by the fishing co-operatives adjoining the fishing jetties or from pre-approved pumps.

Fisheries Minister Nilkanth Halarnkar however played down the issue saying it was a decision taken two years ago.

There is also no reaction yet from most representatives of the trawler owners cooperatives. Their boats have currently dropped anchor at jetties and their operations are suspended owing to the 60-day monsoon-cum-breeding season fishing ban on mechanised boats which came into force from June 1.

Harshad Dhond, the all-Goa Purseiners Association President, meanwhile said he was not aware of the withdrawal of the diesel subsidy but admitted that there was talk in the official government quarters that it was going to be withdrawn.

Dhond said, it was not a ‘subsidy’ but re-imbursement of a portion of the VAT paid by them on diesel they purchase and consume. Neighbouring states like Karnataka, he said were providing their fishermen the subsidy discounting it from costs upfront at the purchase point.

He added that if the subsidy withdrawal is true, Goa’s fishing boat owners will find it extremely difficult to be competitive in the business.