The Federal Board of Revenue (FBR) has formed a seven-member committee to address the ongoing tax dispute in Gilgit-Baltistan (GB), as traders continued their sit-in for a tenth consecutive day. The protests, led by traders involved in Pakistan-China trade through the Khunjerab Pass, have resulted in the blockage of the Karakoram Highway and the suspension of trade and travel between Pakistan and China.
As per media reports, the traders are protesting what they describe as discriminatory FBR policies and the non-clearance of goods imported from China. Their demands include exemption from federal taxes, such as sales tax, income tax, and federal excise duty, on goods imported from China for consumption in GB.
In response to the protests, which have paralyzed trade and travel, the FBR issued a notification announcing the formation of a committee to resolve the tax grievances of the people of Gilgit-Baltistan.Â
The committee’s mandate includes evaluating the imposition of taxes on goods imported via Khunjerab Pass, meant for consumption within GB, and recommending a transparent implementation mechanism for any exemptions.
The committee, which will be chaired by the member customs (operations) and include officials from the FBR, the GB finance secretary, and other key officials, is tasked with examining tax exemptions, proposing measures to prevent misuse, and determining the annual import quantities required for local consumption in GB.
In addition, the committee will consult with local stakeholders and consider mechanisms for clearance at Sost and enforcement at Khunjerab Pass. It is expected to submit its report within seven days.
The ongoing protests have left thousands of travelers stranded, including Chinese nationals, as transportation via the Khunjerab Pass remains suspended for a third day.
