Customs collects record Rs9.5b revenue at Sost dry port

GILGIT: The Gilgit-Baltistan Collectorate of Customs has achieved a record-breaking revenue collection of Rs 9.5 billion from Sost dry port, representing duties and taxes on goods imported from China via the Khunjerab Pass during the first half of the fiscal year (July-December).

The revenue marks an impressive 72 per cent increase compared to the Rs 5.525 billion collected during the same period last year. The six-month collection surpassed the total revenue of Rs 5.126 billion recorded during the same period in fiscal year 2022-23 (FY23).

In a conversation with HUM News Englis, Sost Assistant Collector Customs Syed Imtiaz Hussain termed the revenue collection as “unprecedented and historic.” “As the border becomes operational year-round, we anticipate revenues to reach between Rs 12 to 15 billion by the end of the fiscal year in July,” Hussain remarked.

On the anti-smuggling side, the collectorate’s enforcement team successfully intercepted and seized a large quantity of smuggled goods, including mobile phones. The worth of seized goods is around Rs 600 million.

In a single raid conducted in September, Customs foiled an attempt to smuggle over 15,465 mobile phones worth Rs 446 million from China to Pakistan through the Khunjerab Pass border. The seized consignment included 8,365 smartphones (iPhone, Oppo, Vivo, OnePlus, etc.) and 7,100 bar phones, along with other non-duty paid goods.

The Khunjerab Pass, a critical trade route under the China-Pakistan Economic Corridor (CPEC), reopened this summer, boosting trade volumes significantly. However, the high tax collection on each container passing through the Khunjerab border has become a point of contention since the border’s reopening this year. This led to widespread protests by traders in July and August, bringing trade activities to a standstill for over two weeks.

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

In response to the protests, the Gilgit-Baltistan Chief Court issued a stay order on July 20, restraining revenue authorities from collecting sales tax, income tax, and additional sales tax from importers and exporters at the Sost border station.

Later, the Federal Board of Revenue (FBR) appealed the decision in the Supreme Appellate Court Gilgit-Baltistan, which lifted the stay order and reinstated tax collection, allowing trade activities to resume.

Located at an elevation of nearly 5,000 meters above sea level, the Khunjerab Pass serves as a critical trade station connecting China and Pakistan, facilitating access to South Asia and Europe. Previously, the border was operational only from April to November due to extreme weather conditions, shutting down during the winter months. However, the border was officially transitioned from a seasonal operation to a year-round trade service earlier this month.