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GB Traders End Sost Blockade After Federal Tax Relief Deal

Officials introduced a mechanism that removes federal sales, income, excise taxes at the border.

Overview

  • After roughly two months of sit-ins, the Sost protest ended as cross‑border movement on the Khunjerab Pass route resumes and stranded travelers prepare to move on.
  • FBR officials said sales tax, income tax and federal excise duty will no longer be collected at Sost, while customs duty and regulatory duty will continue.
  • The relief is limited to goods consumed within Gilgit-Baltistan by locally owned firms, guided by a positive list that defines eligible items.
  • Annual exemptions are capped at Rs4 billion with allocations managed through a WeBOC digital quota system and importer verification by the GB government.
  • Authorities pledged transparency and enforcement by publishing beneficiary details, penalizing misdeclaration, reviewing the scheme periodically and clearing previously stuck consignments, with officials estimating trade impacted at over Rs100 billion.