Traders from Pakistan-occupied Gilgit-Baltistan (PoGB) have initiated a sit-in protest at the NLC Dry Port in Sost, demanding the enforcement of a court directive on tax exemptions for cross-border trade with China via the Khunjerab Pass.
The protest that has now reached its third day, has brought trade operations to a halt, and traders have warned that further action, including blocking the Karakoram Highway, will be taken if their demands are not met. The occupied-government inaction is unfairly disrupting their trade and affecting their employment opportunities.
Hussain, a protest leader, emphasized the need for more effective changes to resolve ongoing problems. He pointed out that failures in managing critical issues have led to public discontent and suggested that a proactive approach is required to improve conditions.
“The protest will continue. This is a crucial issue for occupied-Gilgit-Baltistan and will impact the future of small traders. With public support, I believe we can resolve this matter,”.
The protest follows a writ petition filed by the PoGB Importer and Exporter Association. The court had issued a stay order preventing customs authorities from collecting certain taxes at the Sost border station until a final decision is reached.
However, the customs officers and the Federal Board of Revenue (FBR) are employing delaying tactics to avoid implementing the court’s order. Taxation issues in Pakistan, especially in regions like PoGB, are complex and involve multiple layers, often resulting in inconsistent enforcement of tax laws and disputes.
Frequent changes in tax policies further complicate compliance for traders, making it both costly and challenging. Despite court rulings against certain taxes, enforcement remains problematic due to delays and resistance from authorities. Corruption among tax officials also adds to the difficulty, with traders facing demands for bribes or facilitation payments. Delays in processing tax documents and refunds exacerbate cash flow problems, further hindering effective business operations.