ISLAMABAD: To boost the maritime and logistics sectors, the federal government has abolished the 18 per cent sales tax on the shipping industry for 2026-27.

On Saturday, Maritime Affairs Minister Muham­mad Junaid Anwar Chaudhry said the decision was taken to fulfil a long-standing industry demand to improve the shipping sector’s competitiveness.

“The abolition of the 18pc sales tax will facilitate trade by lowering transportation and logistics costs,” the minister said in a statement, adding that the measure will encourage investment in the maritime sector and support the growth of local shipping services.

He said the relief is expected to attract fresh investment, reduce the cost of doing business for importers and exporters, and strengthen the blue economy by creating a more business-friendly environment for maritime enterprises.

Lower operational costs, the minister noted, should enhance supply-chain efficiency and boost the competitiveness of Pakistani firms in international trade.

Mr Chaudhry also argued that the move would spur employment and economic activity across related sectors, including port operations, logistics, and maritime services, and encourage greater private-sector participation in efforts to modernise maritime infra­stru­cture and expand trade capacity.

Published in Dawn, June 14th, 2026