Gilgit-Baltistan traders block CPEC route over tax dispute with FBR

In response to unmet demands from the Federal Board of Revenue (FBR), the Gilgit-Baltistan Importer and Exporter Association closed the China-Pakistan Economic Corridor (CPEC) route on Monday.

According to the 24NewsHD TV channel, the association has continued its sit-in protest outside the Sost Border for the 13th consecutive day, demanding that their grievances be addressed. 

The protest stems from the refusal of FBR officials to comply with the Gilgit-Baltistan Chief Court's order not to impose income tax, withholding tax, and sales tax on traders. 

The protesters have raised strong slogans against the FBR officials, stating that the imposition of these taxes at Sost Dry Port is against the law.

They said the association approached the Chief Court, which ruled that FBR should not collect these taxes at the dry port. 

However, the FBR officials have allegedly disregarded the court's decision, leading to the ongoing protest.

The protesters emphasised that they were forced to close the CPEC route due to the non-compliance of FBR officials with the Chief Court's order.

CPEC is a framework of regional connectivity that is not only benefiting China and Pakistan but also has a positive impact on Iran, Afghanistan, the Central Asian Republic, and the region.

Over the past decade, CPEC, as a flagship project of the BRI, has significantly impacted Pakistan. It attracted substantial investment, generated 236,000 direct jobs, and led to the development of roads, power plants, transmission lines, and optical fibre networks.

The CPEC initiative is divided into three phases. The short-term phase (2015-2022), the medium-term phase (2021-2025), and the long-term phase (2026-2030). The first phase of CPEC focused on infrastructure, energy, and port development projects.