Ferry travel in and around Mumbai is set to become more affordable with the Maharashtra government announcing a tax break for roll-on, roll-off (Ro-Ro) services. The move aims to encourage the use of water transport and reduce traffic congestion and pollution. The Maharashtra Maritime Board (MMB) has waived the transshipment tax and passenger levy for Ro-Ro services for five years, effectively reducing ticket prices by 10%. "This decision eliminates double taxation on two-way ferry services, leading to cost reduction," said Dr. Manik Gursal, CEO of MMB.
An additional 5% reduction in ticket prices is expected if the government approves a reduction in Value Added Tax (VAT) on fuel for Ro-Ro ferries. "This will bring another significant benefit for passengers," said Ashim Mongia, founder member of the company operating the Mandwa-Ferry Wharf Ro-Ro service. The high tax burden, currently at 51%, had been a major hurdle for water transport operators in Mumbai. The government hopes this initiative will encourage both operators and commuters to shift towards this eco-friendly mode of travel, reducing carbon emissions from petrol and diesel vehicles.
Several water taxi services operating between Mumbai and Belapur had earlier suspended operations due to high taxes. This initiative could mark a positive turnaround for water transportation in the city.