In Islamabad a parliamentary panel has requested the government impose a uniform rate of customs duty on imports of fruits from all regional countries, including Iran and Afghanistan. The Federal Board of Revenue informed the Senate Standing Committee on Finance that different rate of taxes were imposed on fruits being imported from different countries.
The FBR argues that fruits and vegetables are freely importable in the country under Import Policy Order 2013. In order to protect the local producers, fruits were subject to the maximum slab of customs duty, ie, 20 percent. Beside this, 10 percent regulatory duty was also levied on import of fruits, which was increased to 15 percent with effect from December 1, 2015.
FBR Chairman Nisar Muhammad Khan told the committee that 35 percent duty / taxes were applicable on the import of fruits from Iran. The customs duty of 20 percent was applicable on the import of fruit, whereas 15 percent regulatory duty was also applicable at the import stage.
The minimum assessable value of Iranian apple has been increased from Rs27 to Rs46 per kg to protect local production. Though, vegetables are subject to zero percent rate of duty at the time of import.
On imports of fruits from Afghanistan, the rate of customs duty has been enhanced from five percent to 10 percent in the Finance Act, 2015.
Import quantity of vegetables from Iran declined drastically (-91 percent) in the current financial year (July–December) compared to the same period of previous financial year, the FBR chairman said.
The FBR, he said, collected Rs65 million duties on the import of fruits during 2015-16 against Rs60 million in 2014-15.
Total import of fruits stood at 10,754 metric tons (MT) in 2015-16 against 10,368MT in the same period of 2014-15. Due to the imposition of regulatory duty on the import of fruits, the FBR collected Rs18 million regulatory duties on import of fruits in 2015-16 against Rs9 million in 2014-15.
The committee was informed that imports of vegetables and fruits substantially declined from Iran due to the imposition of the regulatory duty. The value of imported fruits as well as duty structure has been increased.
