Abolition of 18% sales tax on shipping industry a major boost to maritime economy: minister
- Says removing sales tax on shipping will significantly cut business costs, enhance competitiveness, and attract new investment, strengthening Pakistan's vital maritime sector
Pakistan's government abolished the 18% sales tax on the shipping industry to boost the maritime economy, reduce business costs, and create investment and employment opportunities.
- Impact of sales tax removal on the maritime economy.
- Benefits for local shipping and logistics sectors.
- New investment and employment opportunities.
Federal Minister for Maritime Affairs Muhammad Junaid Anwar Chaudhry said on Saturday that the government’s decision to abolish the 18% sales tax imposed on the shipping industry was an important step toward strengthening the maritime economy.
The minister said that the removal of sales tax will promote the maritime and logistics sectors and is expected to reduce business costs significantly.
He further said that the competitive strength of local shipping companies will improve and will create new investment opportunities.
“The growth of the local shipping industry will increase employment opportunities,” the minister said.
Aurangzeb on Friday unveiled a Rs18.77 trillion federal budget for fiscal year 2026-27, extending relief to the salaried class and offering tax incentives to the real estate and construction sectors, as well as exporters, to revive industry, promote investment, and steer the economy towards a 4% growth target.
Despite facing an estimated revenue shortfall of around Rs1 trillion in the outgoing fiscal year, the government has set an ambitious revenue target of Rs15.264 trillion for FY2026-27. Against the revised revenue estimate of Rs12.983 trillion for the current fiscal year, the target reflects a robust 17.6% growth in revenue collection for the next year.