ISLAMABAD: The federal government has announced a significant tax relief for Gilgit-Baltistan (G-B), allowing duty and tax-free imports of hundreds of items through the Sost Customs Dry Port, subject to an annual exemption cap of Rs4 billion.
The facility has been introduced through a notification issued by the Federal Board of Revenue (FBR) under the Customs Act 1969, Sales Tax Act 1990, Federal Excise Act 2005, and Income Tax Ordinance 2001, and is effective immediately.
Under the new rules, only goods imported via the Silk Route Dry Port at Sost and listed under specific PCT codes will qualify for exemption. Sales tax, income tax, and federal excise duty will not apply provided that each consignment carries online authorisation issued by the Government of Gilgit-Baltistan through the Customs Computerised Clearance System, and the importing firm is fully owned by G-B domicile holders.
The cumulative exemption is capped at Rs4 billion per fiscal year and will be allocated on a first-come, first-served basis. Once the quota is exhausted, subsequent imports will be subject to full taxation.
The notification places strict responsibility on the G-B government to ensure that imported goods are consumed within the region. Any misdeclaration or transport outside Gilgit-Baltistan empowers the Collector of Customs to withdraw the exemption. The Chief Collector of Customs (Enforcement) has been directed to prevent diversion of goods.
Additionally, the exemption facility can be temporarily suspended if customs operations are disrupted due to protests, sit-ins, or road blockages, in consultation with provincial authorities. The FBR has been tasked with implementing a special monitoring and tracking mechanism to ensure goods imported under this facility are clearly distinguished for Gilgit-Baltistan.
