Indian seafarers could well start to price themselves out of the market with shock news that the income tax department will now tax them up to 30% of their salaries whether working on local or foreign flagged ships.

Until this month, Indian crew who spent more than six months at sea had enjoyed similar benefits to non-resident Indians, but now following an income tax tribunal in Kolkata that could all change. Tax authorities are also looking at taking tax income from the previous six years.

India is one of the world's largest suppliers of crews to the world's merchant fleet.

Two seafarers associations, the Maritime Union of India (MUI) and the National Union of Seafarers of India (NUSI), are set to challenge the tax tribunal decision.