Gilgit-Baltistan protesters block CPEC route over tax dispute

Traders on the Karakoram Highway in Gilgit-Baltistan have been protesting for the fourth consecutive day over the levying of taxes by the Pakistan Government. They argue that Gilgit-Baltistan is a disputed region, even though Pakistan can administer it, they can't impose taxes.

Protestors have been demanding the clearance of over 240 consignments stuck at Sost Dry port for the past seven months.

Ashfaq Ahmed, President of Gilgit Baltistan Chamber of Commerce and Industry, says that employment of 20 thousand traders are associated with this port and these traders are being impacted by the implementation of the port.

According to a report by BBC Urdu, the 24-hour sit-in protest has greatly impacted tourism. Tourists have been stranded on both sides due to the closure of the Karakoram Highway.

It had been four days since the protest started, till Monday, and the traders have warned of extended action if the demands are not met. The protest was called by the Pak-China Traders Action Committee: an alliance between the Gilgit-Baltistan Importer and Exporter Association, Gilgit Nagar Chamber of Commerce, and small trade Associations from Nagar, Hunza and Gilgit.

The traders say that the Gilgit-Baltistan region has no major source of income, and the Khunjerab Pass between China and Pakistan was the biggest source of income for the locals.

Pakistan and China have a border agreement of 1985 that permits permanent residents of Gilgit-Baltistan to exchange goods across the border using traditional barter methods.

The traders say that policies of the Federal Board of Revenue (FBR) and the Customs collectorate are not allowing the domiciles of the GB region with a border pass to trade with Xinjiang of China. Despite the disputed status of the region Pakistan Revenue Department, through a notification, established a check post for sales tax.

"Small traders have been exploited for the last five years with various excuses, which we strongly condemn," read a press release from the Gilgit Baltistan Chamber of Commerce and Industry.

The traders demand full exemption from all illegal taxes, instead of customs duty. They also want a Special Trade Facilitation Package because of the special status of the region.

The traders' associations have warned that they will approach the Pakistani Supreme Court and international forums such as the International Court of Justice if their demands are not met.