The menu is designed to showcase a diverse array of India's most popular snacks
Gifts and goods for personal use worth Rs5,000 (Dh285) have been exempted from the 41 per cent import duty, according to the latest notification issued by the department of revenue in the Indian ministry of finance.
The import duty on all personal couriers had shot up to 41 per cent after the government nullified a 1993 notification that exempted import taxes for goods worth less than Rs20,000. This came into effect from July 1, after the introduction of GST (Goods and Services Taxes) on cargo.
As a result, cargo companies had hiked their per kilo price on personal cargo from Dh10 to Dh15. This, in effect meant that expatriates had to cough up Dh900 (Dh300 more) to send a 60kg cargo, which was earlier priced at Dh600.
The Association of Courier Agents that represents more than 60 cargo businesses in the UAE, said tonnes of cargo was held up at India's Delhi and Mumbai airports because agents were unable to clear it by paying the 41 per cent import tax, imposed without prior notice.
With the new exemption on imported gifts worth Rs5,000 taking effect since November, cargo companies have again brought down the prices to between Dh10 and Dh11 for a kilo.
"This is a huge relief. Our business was down by 70 per cent because nobody wanted to send cargo to India at increased prices," said a manager at Rajab Cargo.
"With the new exemption, we are able to send couriers for the earlier price of Dh10-11."
Another cargo company in Abu Dhabi said their per kilo prices have also been revised since November. "Now we are sending cargo at Dh10 per kilo. The companies as well as customers were hard-hit when the government nullified the earlier import-duty exemption," said an agent at Al Falah Cargo.
With the new rule in place, imports of higher value than Rs5,000 will be levied 41 per cent in taxes, which include 28 per cent Integrated Goods and Services Tax (IGST), 10 per cent customs duty and three per cent education cess.
The Association of Courier Agents had petitioned the government to review the decision and reintroduce the tax exemption.
Harikumar, National Convenor of the NRI Cell of the Bharathiya Janata Party, said the issue was brought to the notice of the central ministry as it "affected millions of NRIs in the Gulf region".
Fazal Puthiyakath, chairman of the Federation of Indian Cargo agents (FICA) said the GST council favourably considered the request for tax exemption after many deliberations.
"We could get a favourabe decision thanks to the joint efforts of various NRI associations and political representatives."
The menu is designed to showcase a diverse array of India's most popular snacks
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