KARACHI: In order to stabilize the prices of potatoes, the FBR issued notifications to allow extension in duty and tax free import of the vegetable.
The revenue board on Friday issued three SROs allowing exemption of regulatory duty, sales tax and income tax on import of potatoes till November 2015.
The FBR issued the SROs complying to the decision taken by Economic Coordination Committee of the Cabinet in July in order to keep the price of potatoes stable in the local market.
Earlier, the duty and tax exemption was granted in May after the decision of the cabinet.
The ECC on April 25th, 2014 allowed duty free import of potatoes to bring down the high prices manipulated by hoarders and middle-men.
At the meeting on the said date ECC was informed that if immediate duty free import is not allowed, than the potatoes would be selling at very high price during Ramadan.
It was in this context that the Finance Minister approved appropriate measures to control the prices, in coordination with the provincial governments.
The ECC allowed the import of 100,000 metric tons of potatoes in addition to already approved 200,000 metric tons at zero duties; this extension will continue till November 15, 2014 when the new crop is expected.