In a positive development, the Government of Sri Lanka has reversed itsdecision to increase CESS (Domestic Tax) on imported Mandarins (Kinnows)from Pakistan.
Pakistan has been a leading and steady supplier of quality mandarins to theSri Lankan market in recent years. Last month, Sri Lanka had imposed asudden increase in CESS on imported Mandarins from 30 LKR [Sri LankanRupee] per kg to LKR 160 per kg, making Kinnows exports from Pakistanalmost four times costlier in the Sri Lankan market than before.
Although the tax was imposed on all imported Kinnows/Mandarins, the moveparticularly affected Pakistan as Kinnow is a concessional item under thePakistan-Sri Lanka Free Trade Agreement (PSFTA).——————————
Moreover, the Citrus season in the country had just commenced, and thisdevelopment had placed export orders in immediate jeopardy.
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The Pakistan Fruits and Vegetables Association (PFVA), exporters, and SriLankan importers had also expressed their concerns in this regard andrequested intervention with the Sri Lankan Government.
To expedite an amicable resolution of the matter, the Ministry of Commerce,through its Trade & Investment Attaché, Asma Kamal at Colombo, immediatelytook up the matter with the authorities concerned in Sri
