Protest against taxes ends at border pass linking Pakistan to China

Author: Agencies

Traders in the northern Gilgit-Baltistan region on Sunday called off a 17-day sit-in protest against taxes on imports at an important border pass linking Pakistan to China, following successful negotiations with the government that will pave the way for trade to resume at the key crossing.

Trade and transportation at the high-altitude Khunjerab Pass connecting Pakistan and China remained suspended since July 26 after traders staged a sit-in protest at the Sost dry port against taxes on Chinese imports.

On July 20, the GB Chief Court declared illegal the collection of income tax, sales tax and additional sales tax by Pakistani revenue authorities on goods imported from China through the Khunjerab Pass. Protesters accused the federal government of violating the court’s orders and collecting taxes on imports that arrived through the pass.

“The customs department has accepted the GB Chief Court’s order and the unanimous resolution of the GB assembly,” Imran Ali, president of the GB Chamber of Commerce and Industry, told Arab News via a text message. “So now, we have announced to call off the protest.” Muhammad Iqbal, president of the GB Importers and Exporters Association, said a three-member team representing the traders met GB Chief Minister Hajji Gulber Khan and Minister for Kashmir Affairs and GB Amir Muqam in Islamabad to resolve the issue.

“And they promised to fulfill our demands after assurances with the FBR,” Iqbal said. “From today, the border is open for all kinds of trade and transport.”

Bakhtiar Muhammad, a spokesperson for the Federal Board of Revenue (FBR) said the customs department was willing to implement the GB court’s interim order subject to the provision of monetary security during the case proceedings to safeguard government revenue.

“Traders finally agreed to provide post-dated cheques as security and customs negotiated a standard operating procedure for the clearance, to which they agreed,” Muhammad said.

GB Information Minister Eman Shah shared details of the agreement, saying that local traders in GB would not be taxed for imports through the Khunjerab Pass.

“However, a checkpost will be installed at the Thakot Bridge by customs where all taxes will be applicable on imported things being transported to another region,” he revealed. Ninety-six percent of trade between Pakistan and China consists of China’s exports to Pakistan, while Pakistan’s share of exports to China is only 4 percent, as per the Trade Development Authority of Pakistan (TDAP).