ISLAMABAD: The National Assembly Standing Committee on Ports and Shipping has recommended extension in custom duties and sales tax waiver for Pakistan National Shipping Corporation (PNSC) for 20 to 25 years. The committee observed that this act would provide an appropriate boost to national shipping industry.
The national flag carrier of Pakistan, trading under the name of Pakistan National Shipping Corporation, is engaged in transportation of dry bulk and liquid cargoes globally. Its management offices are located in Karachi, Pakistan and is listed on the Karachi Stock Exchange since 1980.
In this regard, NA body met here with under the Convenership Mir Aijaz Hussain Jakhrani to discuss use of duty/tax exemptions given by the Federal Government to Pakistan National Shipping Corporation (PNSC) and also an update on their future plans.
On the onset of the meeting the committee members were informed that the current government had completely waived off the 27% cumulative custom duties and sales tax till 2020, which were imposed on the ship acquisition from financial year 2011 to 2014.
The committee was briefed that higher rates of taxes, sales tax and customs duties on the acquisition of ships hampered smooth functioning as well as made the business costlier as compared to shipping corporations of other countries.
Moreover, the Merchant Marine Policy 2001, exemption from payment of all import duties and surcharges (taxes) on ships and all flouting drafts up 2020 was announced.
The Minister for Ports & Shipping, Mir Hasil Khan Bizenjo assured the committee that the ministry will fully support the PNSC to buy shipping vessels as the time is right due to the low cost of oil.
The minister also informed that work is in progress regarding ferry service to different neighboring countries and they would be encouraging the entrepreneur from private sector to invest in this sector.
It is pertinent to note here that PNSC is an autonomous corporation, which functions under the overall control of the Ministry of Ports and Shipping and manages a fleet of nine ships, real estate and a repair workshop.
