KHYBER: Fresh fruit exporters feared a drastic reduction in the export of kinnow (citrus fruit) to Afghanistan and some Central Asian states in the current season due to imposition of some new export related taxes by the Federal Board of Revenue in the recent past.

Fruit dealers in Torkham told Dawn that taxes on a 35 tons vehicle loaded with kinnow meant for export to Afghanistan or Central Asia were suddenly increased from Rs95,000 in 2024 to Rs131,000 with the start of the kinnow export season on January 1.

They said it was almost the third time that export taxes on fresh fruits were increased during the last few months which not only affected fresh fruits export to Afghanistan and Central Asia but had also caused huge monetary losses to fruit exporters.

They said that the number of kinnow-loaded trucks meant for export had suddenly dropped from 100 vehicles on daily basis to almost half as the exporters could not absorb the sudden ‘shock’ of revised taxation policy by the FBR.

Exporters blame new taxes imposed by FBR

Khanullah Shinwari, a fresh fruit and vegetable exporter termed the export valuation policy as unjust and extremely harmful for future export of fruits and vegetables to either Afghanistan or Central Asian states.

He explained that further strict restrictions were on cards for fresh fruits and vegetable exporters as they were told that they would also be required to obtain a plant protection certificate from the plant protection department in Karachi for which they would register their export company with the said department along with doing future exports in US dollars.

“Most of the current fresh fruits and vegetable export companies are not registered while they do exports to Afghanistan in Pak rupees and it will be an additional financial burden on them along with agreeing to mandatory exports to Central Asian states in US dollars,” he added.

Khanullah Shinwari further informed Dawn that the last year’s increase in various taxes by the Taliban government in Afghanistan had also adversely affected citrus fruits’ export to Afghanistan,

Mujjebullah Shinwari, president Torkham Customs Clearing Agents Association, was also concerned about the imposition of sudden and additional export taxes on running exports which he believed could seriously harm the existing quantum of revenues generated from trade with Afghanistan and Central Asian states.

He said that though the value for the export valuation of kinnow was mutually fixed by the FBR officials and fruits and vegetable associations back in 2024, it was implemented at a time when the kinnow export season had just started with the majority of the exporters not fully aware of the new taxation policy.

He said the new policy was agreed upon and adopted with the view that it would help in attracting additional remittances from the Central Asian states thus bringing in more US dollars from these countries, but the move had so far backfired as local exporters were reluctant to adhere to the new policy.

He said some Central Asian states had also set the condition of bringing fresh fruits to their countries in air-conditioned containers along with possessing and producing proper quarantine and fumigation certificates at the time of delivery.

“If put into practice, these conditions could seriously hit the local fruit and vegetable markets with a drastic reduction in its exports,” he feared.

Published in Dawn, January 13th, 2025