Islamabad: The Ministry of Maritime Affairs has sought a 20-year extension in the Pakistan Merchant Policy 2001, which provides tax exemptions and duty relief to the maritime industry, a news source reported.
The policy is set to expire in 2020, and the ministry has requested the Federal Board of Revenue (FBR) to consider its proposals in the upcoming budget for the fiscal year (FY2019-20).
The request for extension in the policy and duty exemptions aims to promote the maritime industry. According to sources, the imposition of taxes and duties on the industry would have negative implications as the trade through sea route amounts to billions of dollars.
If extended, the merchant policy would allow considerable exemptions from taxes and duties on vessels, ships, floating crafts, and survey ships. Moreover, the policy would offer a flexible membership fee structure to shipping companies.
