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

GILGIT: Trade and transportation along the crucial China-Pakistan Economic Corridor (CPEC) route at Sost have come to a standstill as Gilgit-Baltistan traders intensify their protest against the Federal Board of Revenue (FBR) and Customs.

The traders are demanding the implementation of a recent chief court decision regarding tax exemptions for local traders.

For the past 13 days, traders have been staging a sit-in outside the Sost Dry Port, protesting against the collection of taxes on Chinese imports through the Khunjerab Pass.

The protests began after Justice Raja Shakeel Ahmed of the Gilgit-Baltistan Chief Court issued a stay order on the collection of income tax, sales tax, and additional sales tax by FBR and Customs.

The court ruling, issued on July 20, stated that the region was exempted from these taxes and ordered that the case be assigned to a Division Bench for further hearing after the summer vacation.

The case was scheduled to be heard on Tuesday but was postponed due to a strike by lawyers who boycotted court proceedings.

Despite the court’s ruling, traders claim that Customs has refused to comply, arguing that the Gilgit-Baltistan Chief Court lacks jurisdiction over federal tax matters.

This refusal prompted the traders to intensify their protest by blocking the CPEC route, effectively halting all trade activities since July 24.

Hundreds of traders, transporters, labourers, customs clearing agents, and political workers have joined the sit-in.

Since July 29, small traders and the baggage trade union have been protesting outside the Pakistan Immigration Office in Sost. On Monday, the protestors shifted their sit-in to the Karakoram Highway, blocking the key entry point for China-Pakistan trade.

While talking to HUM News English, Deputy General Secretary of the Gilgit-Baltistan Importer & Exporter Association Afsar Jan stated that the sit-ins had been moved to the CPEC route and that no one would be allowed to travel to and from China until their demands were met.

The ongoing protests have stranded a significant number of foreign nationals in Sost. These tourists have requested to be allowed to proceed to China, but the protestors have declined, citing the lack of response from authorities to their concerns despite 12 days of agitation.

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The traders have also filed a contempt of court petition against the FBR and Customs for failing to implement the court’s order. The Gilgit-Baltistan Chief Court’s divisional bench, comprising Chief Judge Ali Baig and Justice Jahanzaib Khan, admitted the contempt petition on Saturday and ordered the respondents to appear in person on August 8 to submit their response.