Successful Negotiations on Sust Dry Port: Major Relief for Gilgit-Baltistan Residents

GILGIT: Gilgit-Baltistan (GB) has received a significant boost following successful negotiations between the federal government, provincial authorities, and local traders regarding tax exemptions on goods imported through the Sust Dry Port.

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For years, the people of Gilgit-Baltistan have demanded exemption from sales tax, income tax, and federal excise duty on imports via Sust Dry Port. Today, a historic agreement was reached addressing these concerns, with the following key points:

• Pakistan has always valued Gilgit-Baltistan and its residents, aiming to extend the economic benefits of cross-border trade through the Sust Customs Port to promote regional development and benefit the local population.

• Given that sales tax, income tax, and federal excise duty laws are already exempted in GB, locals have long requested that imports via Sust also be exempt from these taxes.

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• Following recommendations by a committee formed under the Prime Minister of Pakistan, the federal government decided that no sales tax, federal excise, or income tax will be levied on goods imported annually through the Sust Dry Port into Gilgit-Baltistan. The estimated tax relief amounts to approximately 4 billion PKR, calculated proportionally based on the region’s population.

• The government of Gilgit-Baltistan will implement the tax exemptions on imported goods in consultation with the local Chamber of Commerce.

• These measures are expected to significantly reduce the prices of imported goods in GB, benefiting the general public and boosting economic activities including tourism in the region.

• The federal government has also instructed the Federal Board of Revenue (FBR) to implement the decisions of the Customs Appellate Tribunal and resolve disputes related to the valuation of imported consignments in accordance with applicable laws.

• The Sust Dry Port terminal operator has agreed to waive demurrage charges on containers that have been held in the import yard for several months, providing substantial relief to GB traders.

• Importers will not be allowed to bring prohibited goods into Pakistan, with full enforcement of applicable laws.

• Traders have agreed to submit complete and accurate customs declarations, while customs authorities will facilitate legitimate trade as per their mandate.

• Plans were also made to promote exports through the Sust Dry Port, with local chambers and FBR developing a priority-based procedure for this purpose.

• Local traders and GB leaders assured that border crossings will be kept operational without any hindrances to eliminate obstacles to the region’s economic growth.

• As a result of these steps, normal trade traffic is expected to resume smoothly at Sust Dry Port and along the Karakoram Highway (KKH) leading to the Pak-China border.

This landmark agreement marks a major step forward in boosting the economy and improving the quality of life for the people of Gilgit-Baltistan.