Tax Dispute
GILGIT: On Wednesday, the protest over the enforcement of a court order by the Chief Court of Gilgit-Baltistan (GB) intensified, leading to significant disruptions at the Khunjerab Pass, a crucial border crossing between Pakistan and China.
The court order in question restrains the collection of income tax, sales tax, and additional sales tax on items imported from China via the Khunjerab Pass. Protesters took to blocking the exit point to China, significantly disrupting immigration operations and trade activities.
The demonstration has escalated to include threats of further disruptions, including blocking the Karakoram Highway (CPEC), a key route for trade and travel.
Protesters have indicated that they may extend their actions to other areas if their demands are not met. For the sixth consecutive day, GB traders maintained a sit-in protest outside the Sost Dry Port, halting all operations.
They are voicing their grievances against the Federal Board of Revenue (FBR) and Pakistan Customs for continuing to levy taxes on imported goods despite the court’s restraining order.
In parallel, small traders organized a protest sit-in outside the Pakistan Immigration office at Sost, effectively suspending travel to China through the Khunjerab Pass.
This action has led to significant delays and disruptions for thousands of passengers, both foreign and local, who were unable to travel to China.
Protesters displayed banners with slogans targeting the GB collector of customs, the chief collector north, and the member of customs operations.
The protesters argue that Pakistan Customs officials have been unresponsive to their concerns, compelling them to resort to these drastic measures.
Imran Ali, President of the GB Chamber of Commerce and Industry, condemned the FBR and customs officials for allegedly violating the court order and continuing to collect taxes unlawfully. He accused these officials of contempt of court and called for an inquiry into their actions.
Muhammad Iqbal, President of the GB Importers and Exporters Association, echoed these concerns, demanding that the federal government conduct an investigation into the customs officials’ handling of the situation.
Iqbal emphasized that the people of GB have the right to reject taxes imposed by the FBR if the federal government does not acknowledge the GB court’s jurisdiction and the region’s constitutional stance.
Former GB assembly member Javed Hussain highlighted the broader economic impact of the dispute, noting that the suspension of trade through the Khunjerab Pass has led to widespread job losses due to the lack of alternative earning opportunities. Hussain called for an inquiry into the customs officials involved and stressed the urgent need for a resolution.
Local residents who travel to China on trade-related border passes issued by the GB government have also suffered due to the ongoing disruptions.
Small trade organizations have joined the protest, appealing to the Pakistan army chief and the prime minister to address the injustices faced by the local population and demanding the resignation of the customs collector.
In a show of solidarity, a large number of local residents participated in a rally from Sost Bazaar to the Pakistan Immigration office in Sost.
Members of the GB Assembly, both from the treasury and opposition benches, along with representatives from religious and social organizations, visited the protest sit-in to express their support for the demonstrators.
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