August 9, 2024
By Sher Nadir and Ahmed Saeed
LAHORE:
Traders in Gilgit Baltistan have intensified their protests, staging a sit-in near Sost Dry Port and demanding the enforcement of court orders that halted the collection of taxes by customs officials.
The protests have been going on for last two weeks.
The demonstrators have also escalated their actions by blocking the Karakoram Highway, a crucial artery of the China-Pakistan Economic Corridor (CPEC), effectively suspending traffic to and from the Pak-China border.
In July 2024, Justice Shakeel Ahmed of the Gilgit Baltistan Chief Court directed the Federal Board of Revenue (FBR) and Customs to cease collecting income and sales taxes on goods imported from China. The court declared that Gilgit Baltistan (GB) is exempt from all forms of taxation, rendering the collection of such taxes illegal. The decision came in response to a petition filed by the Gilgit Baltistan Traders Association, which challenged the tax collection at Sost Dry Port.
Earlier in June, the GB Legislative Assembly unanimously passed a resolution urging the federal government to halt the collection of taxes on Chinese imports. The assembly demanded that the federal government and the president abolish all sales tax, income tax, and federal excise duty imposed on local traders.
Despite the court order and the resolution, traders accuse the authorities of defying the directives by continuing to collect taxes. The protesters are adamant that the tax authorities must adhere to the court’s ruling.
“Our demand is clear. The authorities must honour the GB Chief Court’s verdict and fully implement the resolution passed by our assembly,” said Javed Hussain, a former member of the GB Legislative Assembly and a key figure in the sit-in.
Hussain warned of further escalation if the authorities fail to meet their demands. “If the Karakoram Highway isn’t serving the interests of GB traders, we see no reason to keep it open,” he stated.
The traders, who have been protesting for 12 days, have signalled their readiness to intensify their actions. “Our next step will be severe. So far, we’ve only blocked the CPEC route, but if necessary, we will march towards Khunjerab or Gilgit city,” cautioned Sheikh Ismail, President of the Small Traders Association.
In response, Pakistan Customs has announced plans to appeal the court’s decision in an effort to reinstate the collection of taxes. Customs officials have also urged the protesters to vacate the customs office premises, and allow trade between China and Pakistan to resume.