Karachi: Sri Lanka imposed a tax on Pakistani canoes within the identify of cess on the imposition of regulatory obligation on the import of Sri Lankan betel by Pakistan. Exports shall be affected.
Despite a free commerce settlement between Pakistan and Sri Lanka, the 2 international locations are imposing tariff restrictions on one another's merchandise, making it tough for Pakistan to commerce with Sri Lanka.
In response to Pakistan's imposition of a regulatory obligation of Rs. 400 per kg on the import of Sri Lankan betel, Sri Lanka has imposed a tax on the import of canoe from Pakistan within the identify of cess, after which Pakistan's canoe Sri Lankan market It has turn out to be four instances costlier and now there’s a danger of a decline in its exports.
The Pakistan Fruit and Vegetable Association has appealed to the Federal Ministry of Commerce and the Prime Minister's Adviser on Trade to lift the problem of lifting the cess on Pakistani canoes by Sri Lanka on the official stage.
In a letter despatched by the Association to Abdul Razzaq Dawood, Advisor to the Prime Minister on Trade, it’s acknowledged that Sri Lanka has elevated the import of canoe from Pakistan from Rs 30 per kg to Rs 160 per kg. After a Pakistani canoe in Sri Lanka which was offered for 10 Sri Lankan rupees final season, now this season its price has gone as much as 35 Sri Lankan rupees, thus decreasing the consumption of Pakistani canoe in Sri Lanka. And Pakistan will face a decline in canoa exports.
The Association has appealed to the Advisor to the Prime Minister to take up the matter with the Sri Lankan Government and to make doable the implementation of the spirit of the Free Trade Agreement between the 2 international locations.
It ought to be famous that below the Free Trade Agreement, the 2 international locations waive import obligation on one another's merchandise. Making.
Pakistan's regulatory obligation on Sri Lankan betel is greater than the customs obligation. Similarly, Sri Lanka has elevated the cess fee on Pakistani canoes greater than the import obligation, which is an indication of free commerce between the 2 international locations. Contrary to the phrases of the settlement.