Pakistan abolishes sales tax on fresh fruit imports from Afghanistan

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Pakistan’s Federal Board of Revenue has abolished the sales tax on fresh fruit imported from Afghanistan. Only apples will continue to be taxed. Businessmen involved in Pakistan-Afghanistan trade said the Pakistani government has always levied tariffs and income tax on fresh fruit imports from Afghanistan, but it does not ‘had never collected sales tax on these items. However, a clerical error in a recent amendment to the ordinance resulted in Afghan fresh fruit being hit with sales tax.

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

Pakistan imposes a sales tax on Iranian apples imported from the Pakistan-Iran border post at Taftan, said former president of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Eng Daroo Khan Achakzai. Since imports of apples from Afghanistan were not subject to sales tax, Iranian apple shipments were routed via Afghanistan, he said.

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

The general tax orders have caused a problem and that is the mistake the government has corrected, traders say.

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