Gilgit-Baltistan to Get Duty-Free Imports via Sost Border under Rs4 Billion Quota

 The federal government of Pakistan has announced that hundreds of goods can now be imported and cleared through the Sost Customs Dry Port for Gilgit-Baltistan (G-B) without the payment of duties and taxes, subject to conditions. Every consignment will require an online permit issued by the authorised G-B government authority through the Customs Computerised Clearance System.

A quota has been fixed under which the cumulative exemption limit of sales tax, income tax, and federal excise duty is set at Rs4 billion per fiscal year. Once this quota is exhausted, standard taxation will apply to all further consignments imported for use in G-B.

The Federal Board of Revenue (FBR) has issued a draft of the new rules for clearance of goods from Sost Customs Dry Port, published in the official gazette. Objections or suggestions may be submitted to the FBR within three days of publication before a final decision is made.

The draft rules, issued under powers granted by the Customs Act 1969, Sales Tax Act 1990, Federal Excise Act 2005, and Income Tax Ordinance 2001, apply only to specific goods imported through Sost Customs Dry Port under specified Pakistan Customs Tariff Codes. Only goods meeting these criteria are eligible for tax exemptions.

Importing firms must be wholly owned by individuals holding a domicile in G-B. The cumulative exemption limit of Rs4 billion will be calculated through the customs system on a first-come, first-served basis.

The rules require that goods imported under this facility be used strictly within the G-B region. In case of disruptions in customs operations due to protests, sit-ins, or road blockages, the Collector of Customs G-B may temporarily suspend the exemption. Misdeclaration or movement of goods outside the region will result in withdrawal of exemptions, and enforcement authorities will ensure compliance with relevant import laws.

This move aims to facilitate trade, reduce the cost of essential goods, and support economic activity in Gilgit-Baltistan by providing a structured duty- and tax-free import framework through the Sost border.

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