Pakistan waives off sales tax on import of fruits from Afghanistan

• "Fruits imported from Afghanistan will have zero per cent sales tax from today," Muhammad Sadiq Khan says. 
• Pakistan's representative for Afghanistan says this will "significantly help Afghan traders and farmers".
• Sales tax on fruit imports has been abolished on the instructions of Prime Minister Imran Khan, FBR chairman says.

ISLAMABAD: The government of Pakistan on Saturday decided to abolish sales tax on import of fruits from Afghanistan.

Sharing a notification issued by the Federal Board of Revenue (FBR) on Twitter, Pakistan's Special Representative for Afghanistan Muhammad Sadiq Khan wrote: "As an indication that Pakistan's foreign policy [has] moved to a geo-economic emphasis, [sales] tax on fruits imported from Afghanistan will have zero per cent sales tax from today."

The ambassador said: "This will significantly help Afghan traders and farmers."

Taking to his official Twitter handle, Taliban spokesman Zabihullah Mujahid also confirmed the news.

According to a statement issued by F&C Chief Abdul Waheed Marwat said: "I am directed to refer to Tax Laws (Third Amendment) Ordinance, 2021 dated 15.09.2021 on the subject and to say that sales tax has become leviable in terms of S.No.15 of Table-I of Sixth Schedule to Sales Tax Act, 1990 on import of fresh fruits from Afghanistan."

"However, in pursuance of a representation of Sarhad Chamber of Commerce and Industry, the issue has been reviewed and consequently, sales tax shall not be collected on fresh fruits imported (except apples PCT 0808, 1000) from Afghanistan," it read.

Commenting on the development, the FBR chairman confirmed that the sales tax on fruit imports from Afghanistan has been abolished.

He said: "Sales tax on fruit imports has been abolished on the instructions of Prime Minister Imran Khan."

Earlier, Minister of Finance and Revenue Shaukat Tarin told the Senate Standing Committee on Finance that Pakistan may trade with Afghanistan in rupee now as the new government in Pakistan wants to save its dollar reserves.