Pakistan Ship’s Agents Association or PSAA demanded the termination of freight tax immediately.
PSAA demanded that freight tax should be end as it is creating negative impacts on the external trade of Pakistan. They further added that it is also creating obstacles in the attraction of investments to the shipping industry.
According to sources, 8% freight tax is implemented under the Section 7 of Income Tax Ordinance 2001. However, it is causing additional expense for the external trade and shipping industry.
Chairman PSAA Tariq Haleem wrote the letter to PTI leader and Federal Minister of Maritime Affairs Ali Zaidi. However, he elaborated that there is the dire need to eliminate the freight tax that is increasing the expense of doing business in the shipping industry.
The imports and exports sector is also adversely affecting by this huge tax. However, trader are using different tactics to avoid this tax that is also affecting the foreign exchange reserves of Pakistan.