18% sales tax abolition on shipping hailed as major boost

June 14, 2026 (MLN): The government has abolished the 18% sales tax on the shipping industry in the 2026-27 budget.

Federal Minister for Maritime Affairs Muhammad Junaid Anwar Chaudhry hailed it as a major boost for the maritime and logistics sectors, according to a press release issued.

He said the decision addressed a long-standing demand from industry stakeholders and would significantly improve the competitiveness of Pakistan's maritime services.

Scrapping the levy would help facilitate trade by bringing down transportation and logistics costs, while also encouraging fresh investment in the sector and supporting the growth of local shipping companies.

The minister said the tax relief was expected to draw new investment, lower the cost of doing business for importers and exporters, and strengthen the blue economy by fostering a more business-friendly environment for maritime enterprises.

He added that reduced operational costs would improve supply-chain efficiency and enhance the competitiveness of Pakistani firms in international markets.

Junaid Anwar Chaudhry further said the measure would generate employment and boost economic activity across allied sectors, including port operations, logistics and maritime services.

This would encourage greater private-sector participation in modernising maritime infrastructure and expanding trade capacity.

Industry groups have long pointed to high taxation and operational costs as major constraints on the growth of Pakistan's shipping sector.

The minister said the budget decision could substantially increase the sector's contribution to the national economy and strengthen the country's overall maritime capabilities.

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