G-B traders shut Sost NLC Dry Port over tax collection dispute

GIGLIT: Traders in Gilgit-Baltistan have shut down the Sost National Logistics Corporation (NLC) Dry Port in protest against the non-compliance of the Gilgit-Baltistan Chief Court’s orders.

On Saturday, the court issued a stay order restraining revenue authorities from collecting sales tax, income tax, and additional sales tax from importers and exporters at the Sost border station until the final decision of the case. The court issued the orders in response to a writ petition filed by the Gilgit-Baltistan Importer & Exporter Association, challenging the imposition of taxes which, according to them, violates existing exemptions granted to Gilgit-Baltistan.

However, the situation escalated when the customs collector allegedly refused to implement the court’s orders, stating that he had sought guidance from his superiors and would not enforce the decision until he received their instructions. This refusal sparked widespread condemnation from trade bodies and led the Gilgit-Baltistan Chamber of Commerce and Industries (GBCCI) to call for a gathering in Sost.

Deputy General Secretary of the Gilgit-Baltistan Importer & Exporter Association, Afsar Jan, spoke to HUM News English, detailing the events that led to the closure. According to Jan, a core committee and general body meeting convened early Thursday, which included members from the Gilgit-Baltistan Chamber of Commerce and Industries, the Importer & Exporter Association, the Baggage Trade Association, and other trade bodies.

The meeting culminated in a unanimous decision to hold a sit-in at the main gate of the port. “Following our decision, traders began a sit-in protest at the port, effectively halting all incoming and outgoing transport,” Jan reported.

He further revealed that an official from the NLC approached the protesters with a request to allow TIR (Transports Internationaux Routiers or International Road Transport) vehicles to pass through. These TIR vehicles, belonging to Afghanistan, were being transported from China. However, the protesters stood firm in their resolve and refused the request, maintaining the blockade of the port’s main gate.

The TIR system is an international customs transit system designed to save time and money for transport operators and customs authorities by facilitating the movement of goods across borders. Despite the significance of these transports, the traders are adamant in their protest.

“We will not allow a single vehicle to enter or leave the port until the Gilgit-Baltistan Chief Court’s decision is implemented in true spirit,” Jan asserted.

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It is worth noting that G-B traders have been on strike since last month against the taxes, which have suspended trade between Pakistan and China. According to them, the suspension of trade at the Khunjerab Pass, ongoing since April, has severely affected Gilgit-Baltistan’s economy, which is highly dependent on cross-border commerce.