India Raises Customs Duty On Goods From Pakistan To 200% After Withdrawal of MFN Status

India on Saturday hiked customs duty on goods imported from Pakistan to 200 per cent, officials said. The decision came following the withdrawal of the Most Favored Nation (MFN) status granted to Islamabad by New Delhi. “India has withdrawn MFN status to Pakistan after the Pulwama incident. Upon withdrawal, basic customs duty on all goods exported from Pakistan to India has been raised to 200 per cent with immediate effect,” India’s Finance Minister Arun Jaitley in a statement posted on Twitter said.

India on Friday withdrew MFN status to Pakistan following the deadly militant attack in Indian-controlled Kashmir.

Last Thursday at least 40 paramilitary troopers belonging to India’s Central Reserve Police Force (CRPF) were killed and many others wounded after a suicide bomber rammed his car, heavily laden with explosives into their convoy on the national highway near Lethpora village in Pulwama district, about 27 km south of Srinagar city, the summer capital of Indian-controlled Kashmir. The Jaish-e-Mohammad (JeM) militant group, which has claimed responsibility for the attack, said a local cadre of the outfit carried out the deadly attack.

New Delhi blamed Islamabad for the attack, but Islamabad rejected the allegation.

Reports said the bilateral trade between India and Pakistan has increased marginally to US$2.41 billion (FJ$5.11bn) in 2017-18.