MUZAFFARABAD: The All Azad Jammu and Kashmir (AJK) Hotels, Guest Houses, Restaurants, and Marriage Halls Action Committee has called upon the government to announce a special relief package to rescue the region’s hospitality industry from total collapse, demanding that the territory be declared a tax-free zone for the next five years.
Addressing a press conference here on Monday, action committee chairman Raja Ilyas, coordinator Abrar Ahmed Butt, and president Neelum Raja Iftikhar and others warned that if the industry was not exempted from the Point of Sale (POS) system and General Sales Tax (GST), business owners would be left with no choice but to hand over their keys to the government in protest.
The committee leaders maintained that the hospitality sector remained the sole functional industry in AJK, providing livelihoods to over 48,000 families.
They argued that under the 1974 Act, the AJK government lacked the legal authority to enforce GST or mandatory POS installations.
Highlighting the unique challenges of the region, they noted that many tourist destinations were situated near the Line of Control, where frequent cross-border firing made it impossible for businesses to secure loans from financial institutions.
They lamented that while Khyber Pakhtunkhwa and Gilgit-Baltistan had been granted tax-free status to bolster international tourism, AJK was being stifled by heavy taxation that discouraged visitors.
Urging the government to prioritise tourism over “extravagant official spending,” the representatives demanded that all scenic spots be opened to international tourists to ensure the industry’s survival.
They further stated that if the government insisted on these taxes, it should take over the operations of these establishments and become the provider for thousands of households dependent on them.
Appealing to Prime Minister Shehbaz Sharif, Chief of Army Staff General Syed Asim Munir, and the AJK Prime Minister Faisal Mumtaz Rathore for immediate intervention, the committee cautioned that the state should not force citizens to take to the streets or “pay a price in blood” to have their legitimate grievances addressed.
Published in Dawn, April 21st, 2026
