Abolition of 18% sales tax to boost Pakistan’s maritime sector, says Junaid Anwar Chaudhry

Federal Minister for Maritime Affairs Muhammad Junaid Anwar Chaudhry has welcomed the government’s decision to abolish the 18 percent sales tax on the shipping industry

Islamabad: Federal Minister for Maritime Affairs Muhammad Junaid Anwar Chaudhry has welcomed the government’s decision to abolish the 18 percent sales tax on the shipping industry, calling it a major policy move aimed at revitalising Pakistan’s maritime economy and strengthening the country’s logistics sector.

Speaking on Saturday, the minister said the withdrawal of the tax burden would lower operational expenses for businesses involved in shipping and maritime services, making the sector more efficient and attractive for investors.

He noted that the decision is expected to improve the competitiveness of domestic shipping companies, enabling them to compete more effectively in regional and international markets. The measure will also encourage fresh investment in maritime infrastructure and related industries.

“The expansion of the local shipping industry will not only enhance economic activity but also generate new employment opportunities for skilled workers and professionals connected to the sector,” the minister said.

The tax relief comes as part of the federal government’s broader economic strategy announced in the budget for the fiscal year 2026-27. Finance Minister Muhammad Aurangzeb presented a Rs18.77 trillion federal budget on Friday, outlining measures aimed at stimulating economic growth, attracting investment, and supporting key sectors of the economy.

The budget includes relief measures for the salaried class, incentives for the real estate and construction industries, and facilitation for exporters to boost industrial activity and help the country achieve its targeted economic growth rate of four percent.

Despite facing a revenue gap of nearly Rs1 trillion during the outgoing fiscal year, the government has set an ambitious revenue collection target of Rs15.264 trillion for FY2026-27. This represents a growth of approximately 17.6 percent compared with the revised revenue estimate of Rs12.983 trillion for the current fiscal year.