FBR slashes RD on fruit import from Kabul

ISLAMABAD: Amid protests by importers for increasing Customs Duty and Regulatory Duty on luxury items, fresh fruits and dry fruits being imported from Afghanistan, the Federal Board of Revenue (FBR) has reduced RD on the import of fruits and dry fruits from Kabul for resolving the outstanding issue.

The FBR issued an SRO on August 22, 2022, for jacking up RD and duties on luxury items and imposed increased rates of duties on imports of fruits and dry fruits from Afghanistan. It had triggered a protest and several trucks halted their movement on both sides of the Pak-Afghan border. One Customs official told The News on Friday night that the import duty and RD on grapes increased from Rs14,000 to Rs49,000, which created a stumbling block on the way for importing fruits and dry fruits. Now the FBR has withdrawn and reduced RD on fruits and dry fruits and restored the position of duties as were charged prior to August 22, 2022. “We have resolved the issue amicably,†he said and added that, however, the increased rate of duty and RD would continue on luxury items under the policy of the government to reduce the import bills.

The FBR on Friday exempted/reduced regulatory duty on the import of fresh and dry fruits if imports are made in Pakistani Rupees (PKRs) or through the barter mechanism by land routes.The FBR has issued a Statutory Regulatory Order (SRO)1722 (1)/2022 to amend S.R.O. 966(1)/2022. The SRO states that the reduced rates of the RD would be applicable from August 22, 2022, to February 21, 2023.

The FBR has exempted RD on the import of some fresh and dry fruits whereas RDs have been reduced from 74 percent to 20 and 10 percent. For example, RD has been slashed down from 49 to 45 percent on the import of Raisins.