Customs deploys anti-smuggling squads at exit points of G-B

GILGIT: In response to a prolonged 17-day protest by importers and exporters against the imposition of taxes on imports from China at the Khunjerab border, the Customs Collectorate in Gilgit has stationed three anti-smuggling squads at key exit points of Gilgit-Baltistan.

According to an official notification issued by the Collectorate, these squads have been deployed at Thor in Diamer along the Karakoram Highway (KKH), Besar on the Babusar Road, and Phander Valley on the Ghizer-Chitral Road.

The decision follows an interim order from the Gilgit-Baltistan Chief Court, which ruled that federal taxes, including income tax, sales tax, and additional sales tax, could not be collected within the G-B region. However, customs authorities were reluctant to implement the court’s decision, leading to widespread protests.

Also read: G-B traders block CPEC route in protest over tax dispute

In a recent meeting held in Islamabad, Finance Minister Muhammad Aurangzeb, along with Minister of State for Finance Ali Pervaiz Malik and newly appointed Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial, were briefed on the new arrangements. During the meeting, it was decided that while the court’s interim order remains in effect, tax authorities would obtain post-dated cheques from importers. If the final court ruling favors the government, these cheques will be cashed; otherwise, they will be returned.

The meeting also decided to shift tax collection to points where imports enter mainland Pakistan from G-B, rather than at the Sost border post, in compliance with the court’s decision.

Although Pakistan’s income tax and sales tax laws do not apply to G-B, taxes were previously levied on all imports from China, including those intended for use within the region. The new arrangement stipulates that the federal government will collect all due taxes once the imports from China enter mainland Pakistan via the Thakot route.

The protest by the Gilgit-Baltistan Importers and Exporters Association, which had significantly disrupted trade, was called off following assurances from the federal government that their concerns would be addressed, leading to the resumption of trade activities in the region.