ISLAMABAD, April 4: The government has asked the investors and stakeholders to come forward and play an active role for reviving the shipping sector under the liberalized shipping policy.
The successful implementation of the policy will generate considerable economic activity and result not only reducing massive freight charges but also generate more revenues. It will generate revenues not only on international lines but also through in-land transportation, said an official handout issued on Thursday.
However, this is only possible if the governments develop new ports such as Gwadar and modernize and expand the existing ones. The government had approved the national shipping policy in July, 2001.
The thrust of the new policy was to give incentive to the private sector to come forward for investment in the shipping sector. The policy, said the handout, aimed at expansion of merchant marine fleet to increase its present share of sea-borne cargo from 5 per cent to 40 per cent; reduction of foreign exchange expenditure on freight charges and repair of vessels; up-gradation of maritime related training and support facilities; augmentation of national ship building capacity to meet at least 20 per cent ship construction requirements.
It was also aimed at rejuvenation of ship repair facility to meet at lest 50 per cent of the national demands; to facilitate investment by the private sector; deregulation and simplification of procedures for public convenience; to attract Pakistani ships, presently operating under foreign flags.
The handout said that among the series of incentives, the CBR had recently exempted imports of ship and all the floating crafts from customs duty till 2020. Similarly, amendment in the second schedule to Income Tax Ordinance, 1970 (XXXI) of 1979 will provide further incentives to the private sector.
According to the new presumptive income tax rates, ships and all floating crafts, including tugs, dredgers, survey vessels and other specialized craft purchased or bare-boats chartered and flying Pakistan flag, shall pay a tonnage tax of an amount equivalent to one US dollar per gross registered tonnage per annum.
Ships, vessels and all floating crafts, including tugs, dredgers, survey vessels and other specialized craft not registered in Pakistan and hired under any charter other than bare-boat charter, shall pay tonnage tax of an amount equivalent to 15 US cents per ton of gross registered tonnage per chartered voyage provided that such tax shall not exceed one US dollar per ton of gross registered tonnage per annum.
Provided that the reduction under this clause shall not be available after June 30, 2002, the handout added.