GANDHINAGAR
In a major financial boost for the coastal economy, the Gujarat government has scrapped the 20-meter length restriction on mechanized fishing boats, making all eligible fishing vessels across the state eligible for Value Added Tax (VAT) relief on diesel fuel.
The decision was finalized during a State Cabinet meeting chaired by Chief Minister Bhupendra Patel. Announcing the policy change, state government spokesperson and Minister Jitu Vaghani explained that the amendment to the existing fuel subsidy program is designed to drive the economic development of Gujarat’s vibrant fishing community.
Under the old guidelines, the state’s diesel tax benefits were strictly limited to smaller mechanized vessels measuring under 20 meters. Recognizing the changing needs of local mariners, the government chose to completely remove this physical limit. Consequently, large deep-sea fishing trawlers will now stand on equal footing with smaller boats, expanding the program’s reach to cover more than 18,000 registered mechanized vessels throughout the state.
To qualify for the tax relief, boat owners must fulfill two mandatory conditions – their vessels must be actively registered on the government’s official Real Craft Portal, and they must hold a valid, up-to-date fishing license.
Under the updated system, all verified boat owners will receive an official state-issued “Diesel Card.” Cardholders will enjoy a substantial VAT reduction of up to ₹15 per liter on their diesel purchases. In instances where the regional market VAT drops below ₹15 per liter, the state subsidy will adjust to match the actual tax amount.
Minister Vaghani emphasized that this uniform policy ensures fairness across small, medium, and large fishing operations. By drastically cutting down daily operational expenditures on fuel, the state aims to protect and strengthen the livelihoods of thousands of seafaring families.