In a recent development, fresh fruit exporters are apprehensive about a potential decrease in the export of kinnow to Afghanistan and certain Central Asian countries due to the introduction of new export-related taxes by the Federal Board of Revenue. According to fruit dealers in Torkham, the tax on a 35-ton vehicle loaded with kinnow for export to Afghanistan or Central Asia experienced a hike from $1,151 in 2024 to $1,588 at the onset of the kinnow export season on January 1. This increment marks the third instance of export taxes on fresh fruits being raised in recent months, impacting not only the exports to Afghanistan and Central Asia but also inflicting substantial financial losses on fruit exporters. The frequency of kinnow-loaded trucks destined for export has notably decreased from 100 vehicles daily to nearly half, as exporters grapple with the abrupt 'shock' of the revised taxation policy by the FBR.
Khanullah Shinwari, a fresh fruit and vegetable exporter, criticized the export valuation policy as unjust and detrimental to the future export of fruits and vegetables to Afghanistan or Central Asian states. He highlighted impending stringent restrictions for exporters, including the requirement to obtain a plant protection certificate from the plant protection department in Karachi, necessitating registration of their export company with the department and conducting future exports in US dollars. Shinwari also mentioned that the previous year's tax increases by the Taliban government in Afghanistan had negatively affected citrus fruit exports to the country.
Mujjebullah Shinwari, president of the Torkham Customs Clearing Agents Association, expressed concern over the sudden imposition of additional export taxes on ongoing exports, which could significantly impact the current trade revenue with Afghanistan and Central Asian states. Despite the export valuation of kinnow being mutually agreed upon by FBR officials and fruit and vegetable associations in 2024, its implementation at the start of the kinnow export season caught many exporters off guard. The policy, intended to attract additional remittances from Central Asian states and increase US dollar inflow, has not been well received by local exporters. Additionally, some Central Asian states have mandated the transportation of fresh fruits in air-conditioned containers and the provision of quarantine and fumigation certificates upon delivery, further challenging the local fruit and vegetable markets and potentially leading to a drastic reduction in exports.
Source: Dawn