Govt exempts sales tax on onion, tomato imports

September 01, 2022 (MLN): The federal government has exempted the sales tax on the import of onion and tomatoes till December 31, 2022, in an attempt to address the issue of food shortage due to catastrophic floods, said a notification issued by FBR.

This decision will help stabilize the already skyrocketing prices of onions and tomatoes in the domestic market in these tough times.

Earlier today, Waheed Ahmed Patron in Chief of Pakistan vegetable and Fruits Exporters Association (PFVA) informed that the import orders for shipment of onion have been placed.

The government has allowed to import of up to 13,000 tons of onion. In order to materialize the said permit, food importers have made agreements with companies of UAE, Turkey, China, and Egypt, he added.

Recent floods have brought unprecedented crop damage. As a result, the prices of onions and tomatoes have sky-rocketed in the local markets. In order to alleviate the suffering of the people due to abnormal price hikes, the Prime Minister of Pakistan ordered urgent relief measures to ensure an uninterrupted supply of onion and tomatoes in the local markets.

Elimination of all taxes and duties in procuring the two vegetables by import will help reduce their prices. In line with the vision of the Prime Minister, and on the directions of the Federal Government, the FBR has exempted all duties and taxes on the import of onion and tomatoes.

Such imports were already exempt from Customs duty but were chargeable to 17% sales tax, 3% additional sales tax, and 1% income tax. Now, these can be imported duty/taxes free till December 31, 2022.

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