Gilgit-Baltistan opens online system for China import tax exemptions

Gilgit-Baltistan Chief Minister Amjad Hussain Azar has formally launched an online system that allows traders in the region to claim tax exemptions on goods imported from China, the Express Tribune reported.

The Gilgit-Baltistan Traders' Registration and Tax Exemption System (GB-TERS) was inaugurated at a ceremony in Gilgit. "The exemptions, secured from the federal government, would benefit traders and the wider public in G-B," Azar said at the launch.

The arrangement follows an agreement reached in September 2025, after a 68-day protest by traders at the Sost Dry Port. The sit-in had blocked the Karakoram Highway and disrupted Pakistan-China trade through the Khunjerab Pass.

Under the agreement, goods imported through Sost for local consumption in Gilgit-Baltistan are exempt from sales tax, income tax and federal excise duty, subject to eligibility criteria and an annual exemption ceiling of Rs4 billion.

Azar said the provincial government had introduced the online system to make access to the exemptions fair and transparent, simplify registration and prevent discrimination. Applicants must operate a registered firm or partnership to qualify.

"The scheme is intended to support local traders and residents while boosting economic activity in the region," the chief minister said.

He directed the provincial secretary for minerals and industries to prepare proposals urgently for a trade-free zone in Gilgit, to serve local and international traders. He said the provincial government would establish the zone from its own resources.

The Federal Board of Revenue created the exemption through a notification issued under the Customs Act 1969, the Sales Tax Act 1990, the Federal Excise Act 2005 and the Income Tax Ordinance 2001. Only goods imported through the Silk Route Dry Port at Sost and falling under specified Pakistan Customs Tariff codes qualify.

Each consignment needs online authorisation from the notified Gilgit-Baltistan government authority, and the importing firm must be wholly owned by individuals holding a Gilgit-Baltistan domicile. Exemptions are granted first come, first served, and imports become taxable once the annual limit is exhausted.

The rules also require the provincial government to ensure that goods imported under the scheme are consumed within the region.