Occupy protest intensifies, traders demand immediate tax relief

Sost (PoGB), August 10 (ANI): Traders in the Pakistan-occupied Gilgit-Baltistan city have intensified their sit-in protests at the Sost port, demanding implementation of court orders that have stopped the collection of taxes by customs officials, local digital media platform Voicepk.net reported.

The protests, now in their second week, have intensified with the blockade of the Karakoram Highway, a key section of the China-Pakistan Economic Corridor (CPEC), snarling movement across the Pakistan-China border, according to the report.

Traders in the Pakistan-occupied Gilgit-Baltistan (PoGB) region have launched protests in response to a petition filed by the PoGB Importers and Exporters Association, local daily Pamir Times reports.

The court issued a stay order that prevented customs from collecting various taxes at the Sost border station until a final decision was made. However, traders say customs officials and the Federal Bureau of Taxation (FBR) are using delaying tactics to avoid enforcing the court order.

It is worth noting that taxation issues in Pakistan, especially in regions like PoGB, are complex and multi-faceted.

Merchants often face inconsistent enforcement of tax laws, leading to confusion and disputes. Frequent changes in tax policies further complicate compliance, making it both costly and difficult for merchants to comply with new regulations.

Despite court rulings against specific taxes, enforcement is hampered by delays and resistance from authorities. In addition, corruption among tax officials—such as demands for bribes or facilitation payments—increases the challenges and costs of compliance. Delays in processing tax documents and refunds also worsen cash flow problems for entrepreneurs, making it even more difficult to run a successful business.

Pakistan mainly exports raw materials and agricultural products, while imports a wide range of finished goods, machinery and technology from China.

Pakistan’s economic dependence on Chinese imports of essential products such as machinery, electronics and energy resources makes the country vulnerable to fluctuations in global trade terms and economic developments in China.

Moreover, while Chinese investment, especially through the China-Pakistan Economic Corridor (CPEC), is significant, it is often focused on specific sectors such as infrastructure and energy, which may not necessarily bring immediate benefits to the overall Pakistani economy.

Despite this imbalance, the trade relationship is crucial for Pakistan. It provides access to one of the world’s largest and fastest-growing markets, boosting Pakistan’s export opportunities in textiles and agriculture. (ANI)