GILGIT: After a 17-day protest by Gilgit-Baltistan traders against newly imposed taxes, trade and transportation between Pakistan and China have resumed at the Khunjerab border.
The sit-in, which had halted business at the Sost Dry Port, ended after the government assured traders that their demand for tax exemptions would be honored.
Muhammad Iqbal, President of the Gilgit-Baltistan Importers and Exporters Association, confirmed that business at the port has restarted. “Our demand for exemption from sales tax and income tax has been met. We have resumed operations.
The protest began in response to the government’s attempt to collect income tax, sales tax, and additional sales tax from the traders.
This was met with strong resistance, leading to a widespread sit-in by the trading community. Traders argued that, based on a ruling by the Gilgit-Baltistan Chief Court and a resolution by the Gilgit-Baltistan Assembly. The region is exempt from such taxes.
Read More: Hand Grenade Explosion in Quetta’s Satellite Town Injures Four
A court ruling by Justice Raja Shakeel Ahmed on July 20 ordered a halt to the tax collection by the Federal Board of Revenue (FBR) and Customs authorities. The case to be referred to a Division Bench after the court’s summer vacation.
Despite the ruling, traders claimed that Customs refused to comply. Asserting that the Gilgit-Baltistan Chief Court has no jurisdiction over federal tax matters.
This led to an escalation of the protest, with traders blocking the Karakoram Highway, a key trade route between China and Pakistan.
On Sunday, the FBR issued a notification establishing a customs checkpoint at Thakot Bazaar. Although the notification did not explicitly exempt the region from taxes. The checkpoint and a mobile monitoring team were seen as a compromise to address the traders’ concerns.
In response, the protesters’ core committee announced the end of the sit-in, expressing confidence in the government’s commitment to implementing the court’s decision.
Read More: Toy Horns Ban Imposed in Islamabad Ahead of Independence Day
However, they warned that if the government fails to uphold its promises. The protests would resume with even greater intensity.
Analysts have pointed out that the Thakot Bazaar checkpoint could limit the reach of Gilgit-Baltistan traders. Restricting their ability to transport goods to other parts of Pakistan without paying taxes.
Read More: Bangladesh Cricket Team to Arrive Pakistan on Tuesday
There are also concerns that this move may be aimed at bringing larger traders into the tax net. Amid reports that Gilgit-Baltistan traders have been acting as intermediaries for bigger businesses across the country.
