Islamabad: The Federal Government has abolished the 18% sales tax on the shipping industry in the 2026-27 budget, a decision praised by Federal Minister for Maritime Affairs Muhammad Junaid Anwar Chaudhry as a significant advancement for the maritime and logistics sectors. Junaid Chaudhry stated that the removal of the tax addresses a long-standing demand from industry stakeholders and is expected to enhance the competitiveness of the country’s maritime services.

According to Press Information Department, the minister emphasized that the tax abolition would facilitate trade by reducing transportation and logistics costs. He noted that this measure is anticipated to encourage investment in the maritime sector and support the growth of local shipping services. The relief is expected to attract new investment, lower the cost of doing business for importers and exporters, and strengthen the blue economy by creating a more favorable environment for maritime enterprises.

Junaid Chaudhry further argued that the move would stimulate employment and economic activity across related sectors, including port operations, logistics, and maritime services. He suggested that it would encourage greater private-sector participation in efforts to modernize maritime infrastructure and expand trade capacity. Industry groups have long criticized high taxation and operational expenses as constraints on the development of Pakistan’s shipping sector. The minister welcomed the budget decision, expressing optimism that it could significantly increase the sector’s contribution to the national economy and enhance the country’s maritime capabilities.