GILGIT: The Khunjerab border between Pakistan and China resumed trade after 17 days of closure due to the protest by traders from the Gilgit-Baltistan region against tax imposition.
The sit-in concluded after the government assured the traders that their demand for tax exemptions would be implemented. The protest disrupted business activities at the Sost Dry Port for 17 days.
Muhammad Iqbal, President of the Gilgit-Baltistan Importers and Exporters Association, confirmed the resumption of business activities at the port.
Talking to the local media, he stated, Our demand for exemption from sales tax and income tax has been met, and we have resumed our business operations. He emphasized that the decision would particularly benefit small traders and those involved in baggage trade, rather than large-scale traders.
The protest was sparked by the government’s attempt to collect income tax, sales tax, and additional sales tax from the traders. This move was met with strong opposition, leading to a widespread sit-in by the trading community.
The traders argued that, according to both a ruling by the Gilgit-Baltistan Chief Court and a resolution passed by the Gilgit-Baltistan Assembly, the region is exempt from such taxes.
On July 20, Justice Raja Shakeel Ahmed ordered a stay on the collection of these taxes by the Federal Board of Revenue (FBR) and Customs authorities. The ruling also stated that the case would be referred to a Division Bench for further hearing after the court’s summer vacation.
