Gilgit-Baltistan (GB) Chief Minister Amjad Hussain on Saturday inaugurated an online system for registering traders who want tax exemption on goods imported from China through the Khunjerab Pass for local consumption.
The GB Traders Registration and Exemption System (GBTERS) was launched at a ceremony at the Chief Minister Secretariat. GB Finance Minister Mohammad Ali Akhtar, Minister for Local Bodies Zulfiqar Ali Murad, Industries, Commerce and Labour Department Director Shahid Ali and other officials attended.
The chief minister said GB traders would benefit from the exemption granted by the federal government for Pakistan-China trade through the Khunjerab Pass. He said the GB government introduced the online system to keep the process transparent and prevent any injustice to traders.
He added that the scheme aims to facilitate local traders and residents and promote economic activity in the region. Applicants must have a registered company or partnership firm.
Mr Hussain directed the provincial secretary for minerals and industries to prepare proposals on a priority basis for a trade free zone in Gilgit. He said the zone would give local and international traders a platform for coordination and the facilities needed to conduct business. The GB government will set it up using its own resources.
Last year, Prime Minister Shehbaz Sharif approved the recommendations of a high-level committee to exempt income tax, sales tax and federal excise duty on goods GB residents import from China through the Khunjerab Pass exclusively for local consumption. The Federal Board of Revenue subsequently issued a statutory regulatory order to implement the measures.
The federal government has capped annual tax relief under the scheme at Rs4 billion, covering 2,403 items imported for local consumption. The exemptions will be reviewed every two years.
Officials told Dawn that the GB government has been tasked with deciding how the Rs4 billion quota will be distributed among local traders importing from China. Local firms and companies will register with the GB Industries and Commerce Department.
