GILGIT: Traders in Gilgit-Baltistan on Sunday called off their 17-day-long sit-in after their demand to implement the chief court’s interim order to stop collecting income tax, sales tax and additional sales tax on imported items from China through Khunjerab Pass was accepted by the Federal Board of Revenue (FBR) and Pakistan Customs.

The traders had started their sit-in outside Sost Dry Port on July 24 against the FBR and Pakistan Customs for not implementing the court restraining order. The protesters later staged sit-in at Karakoram Highway at Sost blocking exit and entry points at the Pakistan-China border. The GB chief minister, assembly and opposition members and all political and religious parties supported the protesters.

Officials said that the FBR and Customs agreed to accept the demand of the protesters to implement the court order till a final decision on the case.

Member Customs Operations Ashhad Jawad told Dawn that traders were protesting against non-implementation of the court order that restrained the departments from collecting sales tax and income tax on imported goods.

He said Customs was willing to implement the interim order subject to provision of some monetary security during the course of the case proceedings to safeguard government revenue.

He said traders finally agreed to provide post-dated cheques as security and the Customs negotiated an SOP for clearance to which they agreed.

He added that all local administration and federal agencies in GB coordinated with Pakistan Customs in negotiating an amicable solution to the issue.

Addressing a press conference at Sost, the 17-member Core Committee of the protesters including President GB Importers and Exporters Association Mohammad Iqbal, President Gilgit-Baltistan Chamber of Commerce Imran Ali, senior businessman and former GB Assembly member Javed Hussain and senior businessmen Iqbal Pathan and Mahboob Rabbani announced that the committee had decided to call off their protest.

The joint declaration signed by all members of the committee said the protest had been called off and Pak-China trade activities through Khunjerab Pass will resume on Monday. The one-point demand to implement the GB chief court order has been implemented, they said.

The joint declaration said protests will resume if the authorities failed to honour their commitments or take any punitive action against the protesters.

Earlier, FBR notified the establishment of a new checkpost at Thakot Bazaar of Khyber Pakhtunkhwa along with a mobile squad to regulate and monitor the movement Chinese goods, entering from tax-exempt region.

According to the notification, the newly established checkpost at Thakot exit, positioned strategically, will cover adjoining areas and ensure compliance with the Sales Tax Act 1990, specifically addressing concerns related to the movement of goods between non-exempt and exempt zones.

The mobile squad will patrol key routes, including the Karakoram Highway towards Mansehra and Abbottabad, to maintain stringent oversight of goods entering non-exempt areas from tax-exempt zones.

Published in Dawn, August 12th, 2024