ISLAMABAD: The federal government has decided to provide duty tax concessions on the import of certain agricultural goods under the trade agreement signed with Afghanistan, and under this agreement, 5 to 26 percent tax concessions will be given on 4 Afghan products. According to sources in the Federal Ministry of Commerce, the federal cabinet has approved the summary of the Ministry of Commerce through circulation. The federal cabinet has approved tariff concessions under the Early Harvest Program. Sources said that Pak-Afghan bilateral trade will be increased under the Early Harvest Program and a notification in this regard is likely to be issued soon. Sources said that the Early Harvest Program agreement between the two countries was signed last week. Under the program, preferential tariff concessions will be provided on certain agricultural products. Pakistan will provide 5 to 26 percent tax concessions on 4 Afghan products. Similarly, Pakistan will eliminate 5 percent duty on Afghan tomatoes. After this reduction, the tax on tomatoes will be reduced from 27 to 22 percent.
According to sources, Pakistan will eliminate 26 percent duty on grapes, pomegranates and apples imported from Afghanistan and after the reduction, taxes on these three products will be reduced from 53 to 27 percent.
On the other hand, Afghanistan will also provide 20 to 35 percent tax concessions on four Pakistani products, Afghanistan will reduce customs duty on Pakistani potatoes by 35 percent and bananas by 30 percent, taxes on potato exports to Afghanistan will be reduced from 57 to 22 percent.
Sources said that Afghanistan will reduce customs duty on Pakistani quinoa and mango by 20 percent, after which taxes on these products will be reduced from 47 to 27 percent, both countries will eliminate or reduce customs duty on four agricultural products.
Sources said that despite the tariff concessions, 22 to 27 percent taxes will continue to be applied by both countries. The tax concessions will be applicable from August 1, 2025 to July 31, 2026, and the two countries will begin negotiations for a comprehensive preferential trade agreement.
According to sources, the negotiations will be based on the performance of the Early Harvest Program and mutual satisfaction.