The Federal Board of Revenue (FBR) in Pakistan has some good news for traders and businesses involved in Afghan transit trade. In a recent development, the FBR has decided to abolish the 10% processing fee on certain Afghan transit commercial goods. This move is set to benefit goods falling under five major categories: confectioneries/chocolates, footwear, machinery, blankets/home textiles, and garments.
The waiver is not a permanent change but is rather applicable to cargo arriving at Pakistani ports within a specific timeframe. The specified period for this exemption is from October 3 to November 16, 2023. If your goods fall into any of the mentioned categories and arrive during this time, you won’t have to pay the 10% processing fee.
This decision is part of an amendment to SRO 1380(1)/2023, outlined in SRO 1112(I) 2023. It’s important to note that the exemption is determined by the berthing date of the vessel bringing the cargo. So, if your cargo arrives within the mentioned timeframe, you are eligible for the waiver.
The initial 10% ad valorem processing fee was imposed in October 2023 on specific Afghan transit commercial goods, including confectioneries and chocolates, footwear, machinery, blankets and home textiles, and garments. However, this fee is now temporarily lifted for the specified period.
It’s crucial for traders and businesses to be aware that the regular processing fee will be applicable after the specified timeframe of October 3 to November 16, 2023. Therefore, if your goods arrive outside this period, the 10% processing fee will be back in effect.
The primary aim of this development is to provide relief to traders and businesses involved in Afghan transit trade during the specified period. By waiving the processing fee, the FBR hopes to facilitate smoother trade operations between Pakistan and Afghanistan. This move is expected to reduce financial burdens on businesses engaged in the specified categories and encourage increased trade activities during the mentioned timeframe.
In conclusion, this temporary waiver of the processing fee by the FBR is a positive step towards supporting businesses engaged in Afghan transit trade. Traders in confectioneries/chocolates, footwear, machinery, blankets/home textiles, and garments can take advantage of this relief during the specified period and contribute to fostering better trade relations between Pakistan and Afghanistan.