GILGIT: Gilgit-Baltistan traders have filed a contempt of court petition against the Federal Board of Revenue and Customs for not implementing the GB Chief Court’s order, which stopped the two organisations from collecting taxes on Chinese imports through the Khunjerab Pass.

The traders have also been holding a sit-in outside the Sost Dry Port for the past 10th consecutive day against the two revenue bodies for not addressing their genuine concerns.

A divisional bench of the GB Chief Court, comprising Chief Judge Ali Baig and Justice Jahanzaib Khan, admitted the contempt petition on Saturday and ordered the respondents to appear in person on August 8 and submit their response.

The petition, filed by GB Importers and Exporters Association president Muhammad Iqbal, sought action against Customs Chief Collector (North) Seema Bukhari, Collector GB Ghulam Mustafa, Additional Collector GB Sajid Ali Baloch for their “willful and deliberate” disobedience of the court’s July 19 order.

Trade with China suspended due to sit-in at Sost

Last month, Justice Raja Shakeel Ahmed of the GB Chief Court stopped FBR and Customs from collecting income tax, sales tax and additional sales tax on goods imported from China through the Khunjerab Pass. The judge said GB was exempted from these taxes.

The decision was issued on a separate petition filed by the GB traders’ association challenging the collection of these taxes at the Sost Dry Port.

However, traders claimed Customs refused to implement the order on grounds that the GB chief court had no jurisdiction on matters of federal taxes.

The traders staged a sit-in outside the Sost Dry Port, suspending all trade activities since July 24. Hundreds of traders, transporters, labourers, customs clearing agents, and political workers have participated in the sit-in.

Since July 29, small traders have been holding a sit-in outside the Pakistan Immigration Office in Sost due to which thousands of foreign and local passengers were unable to travel by road to the neighbouring country.

However, foreigners have now been allowed to travel, but local passengers and transporters have not crossed the border for five consecutive days till Saturday.

The protesters have claimed that despite the court’s order and a unanimous resolution passed by the GB Assembly, FBR and Customs officials were refusing to solve the issues of GB traders.

They said that GB and the bordering Xinjiang province of China had traditional links.

Meanwhile, the protest leaders have called Customs’ actions a “conspiracy against the most peaceful border” and an effort to damage historical ties between Pakistan and China.

They said the agitation created a bad image of the country abroad for which Customs officials were responsible.

The protesters have threatened to expand their protest by blocking the Karakoram Highway and the CPEC route and said they’d announce their future strategy after August 8.

Deadlock between traders, officials

A delegation of GB traders, comprising Mr Iqbal, the importers and exporters association president, GB Chamber of Commerce president Imran Ali and senior businessman Iqbal Pathan, have met with top Customs officials in Islamabad to amicably resolve the issue.

The first round of talks failed after the Customs member operation refused to implement the Chief Court’s order, according to Mr Iqbal.

While talking to Dawn, he alleged that the revenue body had no intention to solve the issues.

Muhammad Shafi Zawar, the general secretary of GB Customs Clearing Agents Association, has told Dawn that the clearance of goods at Sost Dry Port has been suspended since April.

Published in Dawn, August 4th, 2024