Removal of 18% Sales Tax on Shipping Industry in Fiscal Budget 2026-27 is a significant development: Federal Minister for Maritime Affairs
The federal government’s decision to remove 18% sales tax on shipping industry in the fiscal budget 2026-27 has been termed as a significant development for Pakistan’s maritime and logistics sectors.
Federal Minister for Maritime Affairs Muhammad Junaid Anwar Chaudhry today expressed that the decision fulfills the long-standing demand of stakeholders and is expected to increase the competitiveness of the country’s maritime services.
“The removal of the 18% sales tax will facilitate trade by reducing transportation and logistics expenses,” Chaudhry stated, further noting that this measure is likely to attract investment into the maritime sector and support the expansion of local shipping services.
This fiscal relief is expected to draw new investments, lower business costs for importers and exporters, and fortify the blue economy by fostering a more business-friendly environment for maritime enterprises. According to the minister, the subsequent decrease in operational costs should improve supply-chain efficiency and elevate the global competitiveness of Pakistani firms.
Chaudhry also highlighted that the tax removal would stimulate employment and economic activities across related sectors, including port operations, logistics, and maritime services. It is anticipated to encourage greater private-sector involvement in modernising maritime infrastructure and expanding trade capacity.
Industry groups have consistently argued that high taxes and operational costs have hindered the development of Pakistan”s shipping sector. The minister welcomed the budget decision, suggesting that it could significantly increase the sector’s contribution to the national economy and enhance the country”s maritime capabilities.
The federal government’s decision to remove 18% sales tax on shipping industry in the fiscal budget 2026-27 has been termed as a significant development for Pakistan’s maritime and logistics sectors.
Federal Minister for Maritime Affairs Muhammad Junaid Anwar Chaudhry today expressed that the decision fulfills the long-standing demand of stakeholders and is expected to increase the competitiveness of the country’s maritime services.
“The removal of the 18% sales tax will facilitate trade by reducing transportation and logistics expenses,” Chaudhry stated, further noting that this measure is likely to attract investment into the maritime sector and support the expansion of local shipping services.
This fiscal relief is expected to draw new investments, lower business costs for importers and exporters, and fortify the blue economy by fostering a more business-friendly environment for maritime enterprises. According to the minister, the subsequent decrease in operational costs should improve supply-chain efficiency and elevate the global competitiveness of Pakistani firms.
Chaudhry also highlighted that the tax removal would stimulate employment and economic activities across related sectors, including port operations, logistics, and maritime services. It is anticipated to encourage greater private-sector involvement in modernising maritime infrastructure and expanding trade capacity.
Industry groups have consistently argued that high taxes and operational costs have hindered the development of Pakistan”s shipping sector. The minister welcomed the budget decision, suggesting that it could significantly increase the sector’s contribution to the national economy and enhance the country”s maritime capabilities.