THE traders of Gilgit-Baltistan have been protesting for the past two weeks against the collection of federal taxes from them on items traded with China. The Karakoram Highway has been blocked off as part of the protest, affecting trade and travel between Pakistan and China. Several foreign tourists seeking to cross the border into Xinjiang from the Khunjerab Pass are also stuck in no-man’s land. The local traders say that as the GB Chief Court has ruled against the collection of various taxes by the FBR and Customs on items imported from China, the federal bodies have no right to impose income tax, sales tax, etc, on them. Moreover, the GB Assembly has also passed a resolution supporting the traders’ stance.

The traders’ protest is only the latest in a series of public demonstrations against the federal government’s policies in the region. Earlier this year, a wide cross-section of the region’s people from various political parties and civil society groups came together under the banner of the Awami Action Committee and staged massive protests against the raising of subsided wheat prices, as well as exceptionally long hours of loadshedding. Perhaps what lies at the heart of these grievances is the fact that GB’s constitutional status remains in limbo, linked as it is to the Kashmir dispute. The region’s people argue that if the centre is using their resources, then GB’s people should have a voice in national life. As this paper has argued before, GB needs to be given the maximum autonomy possible without compromising Pakistan’s stance on the Kashmir question. Where the traders’ protest is concerned, a judicious solution is required. If the GB court has stayed the collection of taxes, then the decision should be respected. Considering the fragile economic situation, the state may be desperate for revenue. But taxation measures should only be imposed after they have buy-in from GB’s people and elected representatives.

Published in Dawn, August 8th, 2024