GILGIT: Gilgit-Baltistan Chief Minister Amjad Hussain on Saturday inaugurated an online registration system for traders seeking tax exemption on goods imported from China through the Khunjerab Pass for local consumption in the region.
The Gilgit-Baltistan Traders Registration and Exemption System (GBTERS) was formally launched at a ceremony held at the Chief Minister’s Secretariat.
GB Finance Minister Mohammad Ali Akhtar, Minister for Local Bodies Zulfiqar Ali Murad, Director of the Industries, Commerce and Labour Department Shahid Ali and other officials attended the event.
Speaking at the ceremony, the chief minister said GB traders would benefit from the tax exemption facility granted by the federal government for PakistanChina trade through the Khunjerab Pass. He said the GB government had introduced a transparent policy through the online system to ensure transparency in the process and prevent any injustice to traders.
He said the tax exemption scheme aimed to facilitate local traders and residents while promoting economic activity in the region. Applicants must have a registered company or partnership firm to benefit from the scheme.
The chief minister directed the provincial secretary for minerals and industries to prepare proposals on a priority basis for establishing a trade free zone in Gilgit. He said the proposed zone would provide local and international traders with a platform for coordination and the necessary facilities to conduct business activities.
Mr Hussain said the GB government would establish the trade-free zone in Gilgit using its own resources.
Last year, Prime Minister Shehbaz Sharif approved recommendations made by a high-level committee to exempt income tax, sales tax and federal excise duty on goods imported from China through the Khunjerab Pass by GB residents exclusively for local consumption.
Following the directive, the Federal Board of Revenue issued a statutory regulatory order to implement the measures. Under the exemption scheme, the federal government has capped the annual tax relief at Rs4 billion on 2,403 items imported for local consumption. The exemptions will be reviewed every two years.
Officials told Dawn that the GB government had been tasked with determining the distribution and mechanism for allocating the Rs4bn tax exemption quota among local traders importing goods from China.
Local firms and companies will register with the GB Industries and Commerce Department.