The Federal Board of Revenue (FBR) has exempted more than 2,403 Chinese-origin goods from sales tax, income tax and federal excise duty when imported through the Customs Dry Port at Sost for exclusive consumption in Gilgit-Baltistan.
The exemption was notified through S.R.O. 2488 (I)/2025, which introduces a special clearance procedure for goods entering Pakistan via the Sost Dry Port.
Under the notification, the tax exemptions will apply only if consignment-wise online authorisation is issued in the Customs Computerised Clearance System by a duly notified authority of the Gilgit-Baltistan government.
The benefit will be extended by the Collector of Customs on a first-come, first-served basis within an approved quota. Imports exceeding the allocated quota for local consumption in Gilgit-Baltistan will be subject to applicable sales tax, income tax and federal excise duty.
The Gilgit-Baltistan government has been tasked with ensuring that goods cleared under this arrangement are used exclusively within the region.
The notification also empowers the Collector of Customs, Gilgit-Baltistan, to suspend the tax exemption in cases of disruption to customs operations caused by protests or road blockades, following consultation with the regional government.
In individual cases involving mis-declaration or where goods are moved outside Gilgit-Baltistan, the Collector of Customs may withdraw the exemption and initiate proceedings under the Customs Act, 1969.
The Chief Collector of Customs (Enforcement) has been directed to ensure that goods cleared under the notification are not transported beyond Gilgit-Baltistan’s territorial limits.
The FBR said the listed Pakistan Customs Tariff codes covered under the exemption will be reviewed periodically and adjusted as required. A separate procedure will also be developed to distinguish goods imported via Sost for Gilgit-Baltistan from those destined for the rest of the country.
All relevant provisions of the Imports and Exports (Control) Act, 1950, the Import Policy Order and the Customs Act, 1969 will continue to apply to imports through the Sost Dry Port, regardless of their final destination.
