New Sri Lankan tax to decrease Kinnow export by 60 per cent

Islamabad—The Kinnow export to Sri Lanka will be reduced by 60 per cent because of the new tax levied on import of agriculture products. Chief Executive Officer of Harvest Trading Ahmad Jawad told APP that with the imposition of new tax by Sri Lanka, the duties on many export items from Pakistan have been doubled. The duty on Kinnow has increased from $2.19 per 13 kilograms to $4.47. Likewise, the duty on onion has increased from 9 cents to 22 cents per kilogram and on potato from 4.5 cents to 30 cents per kilogram.

The levying of tax is likely to affect 13000 to 15000 tonnes of Kinnow export to Colombo this year, he said. He said that despite the Free Trade Agreement (FTA) signed between Pakistan and Sri Lanka, the export of commodities like fruit and vegetables from the former to the latter will be affected because of the imposition import duty by Colombo.

“The recently imposed tax has started affecting the exports of agricultural products to Sri Lanka which may reduce the over all exports of the country”, Jawad said. It is worth mentioning here that Sri Lanka is the major importer of onion, potato and kinnow from Pakistan.

A Special Commodity Tax has been imposed by Sri Lanka on Imported Agricultural Products such as Green Gram, Black Gram, and others to protect its domestic farmers for three months. Pakistan exported almost 35000 tonne potatos last year. There is no additional duty on imports of Pan, Chalia, Coconut Powder, Pineapple, and others from Sri Lanka to Pakistan.

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