The Federal Board of Revenue (FBR) has formed a seven-member committee to address tax concerns in Gilgit-Baltistan (GB). This move follows a ten-day protest by GB traders over federal taxes on Chinese imports. The protest has halted trade and travel at Khunjerab Pass. Traders, linked to the Pakistan-China trade route via Khunjerab Pass, are blocking the Karakoram Highway. They are protesting federal taxes on goods imported from China, claiming these policies are unfair. The Sost Dry Port remains the protest’s focal point.
According to the FBR notification, the committee will evaluate GB residents’ tax grievances. It will review the application of sales tax, income tax, and excise duties on Chinese imports meant for local consumption in GB.
The committee includes senior officials from customs, inland revenue, and the GB finance department. It will also recommend exemptions and ensure their transparent implementation. Misuse prevention and enforcement mechanisms will be part of its focus. One of the committee’s key tasks is identifying HS codes and estimating annual import volumes for GB’s local needs. It will also suggest systems to ensure that exempted goods are used only within GB.
In addition, the committee will explore customs clearance improvements at Sost and propose duty collection options for the GB government. It will consult local stakeholders before finalizing its report, which is expected in seven days.
The ongoing protest has stranded thousands of travelers and disrupted transportation to China for the third day. Chinese nationals planning to return to Xinjiang via Khunjerab Pass have joined the sit-in, urging for immediate travel access.