KHYBER: In fiscal year 2024-25, the federal government of Pakistan has increased tax on imports of fruits and vegetables from Afghanistan up to three times that will suffer bilateral business relations between Pakistan and Afghanistan, traders said.
Traders said that enhancing the tax on Afghanistan import groceries will certainly decrease business as consumption of the imported goods will reduce due to price hike of the commodities because of additional import tax.
Shah Jehan Shinwari, an importer, said that a threefold increase in tax on Afghan imported groceries was equal to halting import of it.
Earlier, there were many problems being faced by the Pak-Afghan businessmen and the recent development would prove the last nail in the coffin of bilateral trade.
As per custom official in Torkham, these days tomato, cucumber and apricot import to Pakistan,this will be followed by various types of fruit and vegetables.
Previously, an importer had to pay Rs.13000 per ton of apricot and with increase of tax on import, one has to pay Rs 52000 per ton.
Similarly last time, import duty on grapes was Rs.19000 per ton that would be paid as Rs. 78000 per ton.
Rise in tax,definitely suffered import of groceries and it decreased to three times as compared to last time, he added.
Another trader Qari Nazeem Gul said that although 80% export to Afghanistan had decreased but still trade of fresh fruits and vegetables continued between the two countries.
Increase in tax on import of fruits and vegetables will decrease imports from Afghanistan that not only suffer bilateral trade but will also have a negative impact on national exchequer.
He regretted that the anti-trade policies would surely discourage Afghan businessmen and there would be left no option for them but to turn towards Iran and Central Asia countries for trade.
The businessmen community feared that the enhancement of import tax on Afghan groceries would incite the Afghan government to follow them in near future by imposing additional tax on Pak export fruits like Kinoo(citrus fruit) and vegetables.
It is to be stated here that in November 2023, the Taliban regime in Afghanistan imposed 34% tax on import of Kinoo from Afghanistan.
When former President of Sarhad Chamber of Industry and Commerce Zahidullah Shinwari was asked for his expert view on the introduction of increase in import tax he said that the budget of the 2024-25 had been formulated on the dictation of International Monetary Fund (IMF) therefore instead of facilitating citizens of the country, the incumbent government imposed extra- taxes to meet conditions of the Fund.
He maintained that Pak-Afghan business had been already facing multiple challenges and the recent unjustified increase on import of fruits and vegetables from Afghanistan would further experience mutual trade loss.
With a burden of additional import tax on groceries from Afghanistan, will cause price hike of the commodities will be equal to deprive the laymen of the consumption of Afghani fruits and vegetables at reasonable prices, he remarked.
Traders associated with bilateral trade said that in 2012-13 Pak-Afghan trade had touched a figure of three billion dollars annually that has dipped to eight hundred million dollars in a year in recent years.
