Date:08/02/2006 URL: http://www.thehindubusinessline.com/2006/02/08/stories/2006020801561200.htm

Back Seafood units' stir from Feb 13

Our Bureau

Chennai , Feb. 7

SEAFOOD processing units are to go on a three-day strike from February 13 in protest against the Centre's decision to tax DEPB income on export turnover, according to a spokesman for the Seafood Exporters Association of India (SEAI).

The Finance Ministry's decision to tax DEPB income would mean that the seafood processors would have to shell out Rs 500-700 crore for the period between 1997 and 2002 when they had availed of this benefit.

According to the SEAI representative, over 400 seafood processing units that account for India's exports of Rs 6,000 crore a year would stop work for three days from Monday next week. If required, the strike would also be extended.

This would mean that the units would not purchase sea-caught material from the fishermen and produce from the aquaculture farms. Over three million workers, including fisherfolk, shrimp farmers and those employed in the farms, could be affected by the strike, the spokesperson said.

Through a recent amendment of the Income-Tax Act, the DEPB income on export turnover of more than Rs 10 crore has come under the tax net.

According to the SEAI representative, the export incentive has been worked into the cost of the export product when it was available. Now the income-tax authorities are claiming tax, which cumulatively would wipe out the industry.