The Gilgit-Baltistan Chief Court declared the income tax, sales tax, and additional sales tax collected by revenue authorities on goods imported from China through the Khunjerab Pass as illegal. On Friday, the court issued an order to stop the Federal Board of Revenue (FBR) and Customs from collecting these taxes. This ruling came in response to a petition filed by GB Importers and Exporters Association president Muhammad Iqbal through his counsel, challenging the taxes collected at the Sost Dry Port on Chinese goods imported through the Khunjerab Pass. The petitioners stated that the FBR, through a 1996 notification, had suspended the collection of sales tax on imported goods in GB, and referred to subsequent orders by the GB Council Secretariat in Islamabad, the Ministry of Kashmir Affairs and Gilgit-Baltistan, and the GB law department, which declared the region exempt from these taxes.
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