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Pakistan abolishes sales tax on fresh fruit imports from Afghanistan

Pakistan’s Federal Board of Revenue has abolished the sales tax on fresh fruit, imported from Afghanistan. Only apples will be continued to be taxed. Business people involved in the Pakistan-Afghanistan trade have stated that Pakistan's government had always levied custom duties and income tax on the fresh fruit imports from Afghanistan, but it had never collected the sales tax on these items. However, a clerical mistake in a recent amendment to the ordinance resulted in Afghan fresh fruit being slapped with the sales tax.

When traders reported the error to the government, it issued a corrected ordinance, but apples would continue to be taxed.

Pakistan imposes sales tax on Iranian apple which is imported from the Pakistan-Iran border crossing at Taftan, said Federation of Pakistan Chambers of Commerce and Industry (FPCCI) former president Eng Daroo Khan Achakzai. Since apple imports from Afghanistan did not face the sales tax, the Iranian apple shipments were routed through Afghanistan, he said.

It affected Pakistani traders who asked the government to intervene and the government imposed sales tax on all fresh fruit imports from Afghanistan, Achakzai told samaa.tv.

The blanket tax orders caused a problem and this was the mistake that the government has corrected, according to traders.

 


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