Boosting Bilateral Trade: Pakistan Lifts Sales Tax on Afghan Fresh Fruit Exports


In a significant move to enhance trade ties and foster economic cooperation, Pakistan has decided to exempt the previously imposed 17% sales tax on fresh fruit exports from Afghanistan. The decision comes as a result of successful negotiations between officials from both countries and is poised to have a positive impact on the trade and transit dynamics between Pakistan and Afghanistan.

The announcement was met with appreciation from Afghanistan’s Foreign Ministry spokesperson, Abdul Qahar Balkhi, who welcomed the development in a statement. Balkhi emphasized that the elimination of the sales tax on fruits is expected to contribute to increased trade and transit activities, fostering greater facilitation between the two nations.

The Federal Board of Revenue (FBR) in Pakistan formalized this decision through the issuance of a circulation, presenting the Tax Law (Third Amendment) Ordinance 2021. The directive explicitly states that sales tax will not be collected on fresh fruits imported from Afghanistan, with the exception of apples (PCT 0808, 1000).

This move not only reflects a commitment to strengthening economic ties between Pakistan and Afghanistan but also demonstrates the positive outcomes that can be achieved through diplomatic negotiations. The mutual efforts to remove trade barriers are anticipated to create a conducive environment for expanded economic collaboration and increased cross-border trade.

As the region embraces these developments, the focus remains on fostering friendly relations and creating avenues for shared prosperity. Stay tuned for further updates on the evolving economic landscape between Pakistan and Afghanistan.

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