FBR imposes 10% processing fee on Afghan transit trade

The Federal Board of Revenue (FBR) has announced the imposition of a 10% processing fee on Afghan transit trade, according to a recent notification. 

This electronic fee will apply to five new categories of products, including agricultural tools, cranes, electronic scrap, and data machines.

The Ministry of Commerce recommended the introduction of the bank guarantee and processing fee to prevent the misuse of Afghanistan’s lower customs duties. The new policy is part of the government’s efforts to combat illegal trade under the guise of Afghan transit and improve tax collection while promoting greater transparency.

Earlier on Friday, Pakistan allowed more than 160 Afghan trucks, carrying dry fruit, essential food items, and medicinal herbs, to cross the Wagah border. 

The border had been closed since April 22 following a terrorist attack in Pahalgam on April 23, which led Pakistan and India to suspend all trade and passenger movement via land routes.

The reopening came after a ceasefire agreement between Pakistan and India on May 10, easing military tensions. In response to a request from Afghanistan, Pakistan permitted Afghan trucks that had entered the country before April 25 to cross the Wagah border, further underscoring the strong bilateral relations between Pakistan and Afghanistan.

Pakistan’s Ministry of Foreign Affairs facilitated the movement of goods, and customs officials at Attari and Wagah ensured the smooth transit of goods.