September 27, 2020

Government Reduces Taxes For Local Shipping Companies

Local Shipping Companies

The Minister for Maritime Affairs Ali Zaidi told a press conference on Wednesday the 18th of September 2019, that the government has drafted a new taxation policy for Pakistan based Shipping companies, which would reduce the taxes charged to the local shipping companies. This policy has been adopted to reduce the freight charges given to foreign companies and reduce dependence on them.

The Minister said that Pakistan based shipping companies would be charged lesser sales and custom duties, whereas the new companies entering this sector won’t be charged any income, sales and custom duties until 2030. He added that the local shipping companies would be given priority and the payment would also be made in Rupees to reduce dependency on foreign currency.

He added that the new policy would generate employment and would reduce the burden on the economy. He added that the fuel imported through local shipping companies would be completed on Free on Board (FOB) basis, which means that the shipping companies would be paid as soon as they load their cargo. The FOB policy would enable sellers to include the delivery charges in the cost of the product, hence the shipping company gets the payments immediately.

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