In a major breakthrough for the people of Gilgit-Baltistan (GB), negotiations over tax exemptions on imports through the Sost Dry Port concluded successfully in Islamabad, Gwadar Pro reported. Announcing the agreement at a press conference, Minister for Power Sardar Awais Ahmad Khan Leghari said the decision was reached after extensive talks between the federal government, the GB Government, and regional business leaders.

Gilgit-Baltistan Chief Minister Haji Gulbar Khan, Senator Saleem Mandviwalla, and trader representatives also attended the signing ceremony. The historic step will reduce prices of imported goods, boost trade and tourism, and strengthen economic activity in the region. Pakistan has always attached great importance to Gilgit-Baltistan and aims to ensure that the economic benefits of cross-border trade through Sost Customs Port directly reach the people of the region, helping GB to prosper and develop.

Since sales tax, income tax, and federal excise duty laws do not apply to GB, the people had long demanded that imports made via Sost should not be subjected to these taxes. Acting on the recommendations of a committee formed by the Prime Minister, the federal government has decided that imports brought into GB annually through Sost Dry Port will not be charged sales tax, federal excise duty, or income tax.

The total volume of these taxes is estimated at around PKR 4 billion, calculated in proportion to the region’s population. The government of GB, in consultation with the local Chamber of Commerce, will implement the process for tax-exempt imports. As a result of these measures, the prices of imported goods in GB will decline substantially, benefiting ordinary citizens, boosting tourism, and enhancing economic activity in the region.

Furthermore, the federal government has directed the Federal Board of Revenue (FBR) to comply with the decision of the Customs Appellate Tribunal and to resolve disputes regarding the valuation of imported consignments in accordance with applicable laws. The Sost Dry Port terminal operator has also agreed to waive demurrage charges on containers that have been lying in the import yard for several months, offering major relief to GB traders.

Import of prohibited items into Pakistan will remain strictly banned, and all applicable laws will be fully enforced. It was also agreed that traders will now file complete and accurate declarations with customs, while customs will facilitate legitimate trade in accordance with its mandate. A decision was taken to promote exports through Sost Dry Port as well, with local chambers and FBR tasked to develop a mechanism on a priority basis.

Local traders and GB leaders assured the government that the border crossing will remain operational without hindrance to remove obstacles in the region’s economic growth. As a result of these steps, trade movement along the Karakoram Highway (KKH) leading to the Pakistan-China border through Sost Dry Port will now resume normal operations.

Credit: Independent News Pakistan (INP) — Pak-China