KP govt imposing tax on Afghan transit goods

KABUL): The Khyber Pakhtunkhwa government has decided to impose one percent tax on Afghan transit trade goods under its annual budget that has been approved by the provincial cabinet.

KP finance minister Sirajul Haq told Pakistani media on Monday income from the one percent tax would be used to construct the Peshawar-Torkham road.

The bulk of Afghan transit goods arrive in Karachi where Afghan and other traders who ship the goods to Afghanistan pay demerge charges and other taxes.

It is for the first time that tax is being imposed on Afghan transit goods outside Karachi. Pakistan annually earns more than four billion Pakistani rupees in taxes on transit goods destined for Afghanistan.

The Afghanistan Chamber of Commerce and Industries (ACCI) on Tuesday strongly reacted to the KP government’s decision, calling it against the transit trade accord between the two countries.

ACCI deputy head Khan Jan Alokozai said although the new tax had not been imposed as yet, Afghan traders were against it.

He said Afghan traders already paid taxes to Sindh government and they would not pay more taxes on the same goods.

He said such taxes had no mention and room in the Afghanistan-Pakistan Trade Agreement (APTA). “If Pakistan imposes extra taxes on Afghan goods, we will ask Afghan government to impose taxes on Pakistani goods in each province they pass”, he warned.

myn/ma

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