Pakistan Abolishes 18% Sales Tax on Shipping Industry

The federal government has withdrawn the 18 percent sales tax on Pakistan’s shipping industry in the Budget 2026-27 to cut logistics costs, attract investment, and strengthen the country’s maritime sector.

Federal Minister for Maritime Affairs Muhammad Junaid Anwar Chaudhry described it as a long-standing demand of industry stakeholders.

He said the tax exemption would improve the competitiveness of maritime services and support the expansion of domestic shipping operations.

The minister said the removal of the tax will lower transportation and logistics expenses for businesses, ease trade flows, and encourage fresh investment in shipping and related industries. He added that reduced operating costs could improve supply-chain efficiency.

Chaudhry said the measure would also support growth in the blue economy, create a more business-friendly environment, and generate economic activity across port operations, logistics, and maritime services.

The government expects the tax relief to encourage greater private-sector participation, boost maritime infrastructure development, and increase the sector’s contribution to the national economy.