The federal government has eliminated the 18% sales tax on Pakistan’s shipping industry in the Budget 2026-27, aiming to reduce logistics costs and improve the sector’s competitiveness.

Federal Minister for Maritime Affairs Muhammad Junaid Anwar Chaudhry said the decision responds to long-standing demands from industry stakeholders. He stated that removing the tax will ease transport and operating costs, improve trade efficiency, and strengthen maritime services.

According to the minister, the measure is expected to attract new investment into the shipping sector, encourage expansion of local maritime operations, and support broader growth in the blue economy. Lower costs, he added, would help exporters and importers by improving supply-chain performance and making Pakistani firms more competitive internationally.

He further noted that the policy shift could stimulate activity in port services, logistics, and related maritime industries, while also encouraging greater private-sector participation in infrastructure development.

Industry representatives have repeatedly argued that high taxation has constrained the sector’s growth, and officials believe the new relief could increase the shipping industry’s contribution to the national economy.