Exporters accuse FBR of crippling kinnow trade to Afghanistan and Central Asia

In Pakistan, fresh fruit exporters are expressing serious concerns regarding the export of kinnow to Afghanistan and various Central Asian countries due to recent tax hikes imposed by the Federal Board of Revenue (FBR). The new export season began on January 1, 2025, and exporters noted that the tariffs for a 35-ton vehicle carrying kinnow rose dramatically from Rs95,000 to Rs131,000. This increase marks the third such surge in export taxes over a few months, causing significant disruptions in the trade flow. As a direct consequence of these heightened costs, the number of trucks transporting kinnow for export has drastically fallen, from around 100 vehicles per day to nearly 50. Exporters report being unable to accommodate this abrupt financial shift, which they deemed harmful to their businesses. Khanullah Shinwari, a key player in the fresh fruit industry, criticized the export valuation policy as oppressive and detrimental to future business endeavors, suggesting that the imposition of further restrictions could create additional obstacles for traders. Compounding these challenges is a previous increase in taxes enacted by the Taliban government in Afghanistan, which had already strained economic relationships between Pakistan and Afghanistan. Mujjebullah Shinwari, the president of the Torkham Customs Clearing Agents Association, warned that the current tax strategies might inflict severe damage on revenue generation from trade with Afghanistan and Central Asian markets. Additionally, Central Asian nations have begun implementing stringent requirements for the import of fresh fruits, mandating air-conditioned transport along with valid quarantine and fumigation certificates. If these requirements come into force, the local fruit and vegetable sectors could face catastrophic declines in exports, further jeopardizing economic stability.