Sost [PoGB], July 29 : The border trade between Pakistan and China remains halted as traders have extended their sit-in protest into its fourth day, according to Pamir Times.
Protesters in the Sost village of the upper Hunza region of Pakistan-occupied Gilgit-Baltistan are advocating for an end to tax collection, in line with a recent ruling by the PoGB Chief Court that deemed various taxes imposed on residents unlawful.
Traders from PoGB initiated a sit-in at the NLC Dry Port in Sost to demand the implementation of a court order regarding tax exemptions for cross-border trade with China through the Khunjerab Pass.
This protest has halted trade activities, and traders have threatened further action, including blocking the Karakoram Highway, if their demands are not met. They argue that the authorities' actions are unfairly hindering their trade and employment opportunities.
According to a report by the Pamir Times, a local daily, the protest came in response to a writ petition filed by the PoGB Importer and Exporter Association. The court had issued a stay order restraining the customs authorities from collecting sales tax, income tax, and additional sales tax from local importers and exporters at the South Border Station until the final decision of the case.
However, the traders allege that the customs officers and the Federal Bureau of Revenue (FBR) are employing tactics to delay the implementation of the court order.
The taxation issues faced by traders in Pakistan, especially in regions like Pakistan-occupied Gilgit-Baltistan (PoGB), are complex and multi-layered. Traders frequently deal with inconsistent enforcement of tax laws, as different areas may interpret and apply tax regulations differently, leading to confusion and conflicts.
Frequent changes in tax policies and regulations add to the uncertainty, making it difficult and expensive for traders to adjust to new rules and compliance requirements.
Even when courts issue stay orders or rulings against certain taxes, traders often struggle to have these decisions enforced.
Authorities may delay or resist implementing these orders, resulting in extended disputes. Corruption among tax and customs officials is a significant concern, with traders sometimes facing demands for bribes or facilitation payments, which complicates compliance and increases costs. Additionally, the slow and inefficient processing of tax documents and claims, including delays in tax refunds, can severely impact traders' cash flow.
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