ISLAMABAD: The National Assembly Standing Committee on Ports and Shipping will discuss the exemptions of tax and duties granted by the federal government to the Pakistan National Shipping Corporation (PNSC) today.
In this regard, a meeting of the committee has been convened here at Parliament House and PNSC officials have been asked to brief the about how the organization has benefited from duty/ tax exemption given by the federal government along with an update on their future plans.
The national flag carrier of Pakistan, trading under the name of Pakistan National Shipping Corporation (PNSC) is engaged in transportation of dry bulk and liquid cargoes globally. Our Management offices are located in Karachi, Pakistan and we are listed on the Karachi Stock Exchange since 1980.
A well placed source at Ports and Shipping Committee secretariat told Customs Today that the PNSC had moved a draft of proposals to the FBR through the Ministry of Ports and Shipping seeking tax and duties exemptions in budget proposals.
“The higher rates of taxes, sales tax and customs duties on the acquisition of ships hampered smooth functioning as well as making the business costlier as compared to shipping corporations of other countries” the source observed.
The source further said that under 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. However, sales tax and customs duties at the rate of 17% and 10%, respectively, were being collected from the ship acquisition.
“In result of lengthy correspondences with the FBR and Finance Ministry, at last PNSC successfully obtained full exemptions or reductions in rates of taxes in the current financial budget” the source added.
“Since the passage of the current budget, PNSC is enjoying full waiver of tax and duties on sales/ purchases along with freedom of doing well in time businesses” the source said, however, no analytical purview had been made of this concession so far. Therefore, National Assembly Committee of Ports and Shipping has taken decision to get the update report from the PNSC authorities in this regard.
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.
