Facility can be suspended if customs operations are disrupted due to protests, sit-ins or road blockages
Shipments at Sost Dry Port from China. Sept 25, 2025. Ibrar Khan
ISLAMABAD:
The federal government has granted a major tax relief package for Gilgit-Baltistan by allowing the duty and tax-free import of hundreds of items through the Sost Customs Dry Port, subject to an annual exemption cap of Rs4 billion.
The facility has been introduced through a notification issued by the Federal Board of Revenue under the powers of the Customs Act 1969, Sales Tax Act 1990, Federal Excise Act 2005 and Income Tax Ordinance 2001, and has come into force with immediate effect.
Under the new rules, only goods imported via the Silk Route Dry Port at Sost and classified under specific PCT codes, listed in the notification, will qualify for the exemption. Sales tax, income tax and federal excise duty will not be levied on those imports provided that each consignment carries online authorisation issued by the duly notified authority of the Government of Gilgit-Baltistan through the Customs Computerised Clearance System, and that the importing firm is entirely owned by persons holding Gilgit-Baltistan domicile.
The cumulative tax exemption for such imports has been capped at Rs4 billion per financial year and will be granted on a first-come, first-served basis through the computerised customs system. Once the approved quota is exhausted, all subsequent imports for consumption within Gilgit-Baltistan will become subject to full taxation.
The notification places strict responsibility on the Government of Gilgit-Baltistan to ensure that all goods imported under this facility are used strictly within the territorial limits of the region. In cases of misdeclaration or if the goods are found to have been transported outside Gilgit-Baltistan, the Collector of Customs is empowered to immediately withdraw the tax exemption. The Chief Collector of Customs (Enforcement) has been directed to take effective measures to prevent the movement of such goods beyond the region.
Furthermore, the rules authorise the temporary suspension of the tax exemption in case customs operations are disrupted due to protests, sit-ins or road blockages, after consultation between the Collector of Customs Gilgit-Baltistan and the provincial government.
FBR has also been tasked with developing a special monitoring and tracking mechanism to clearly distinguish goods imported for Gilgit-Baltistan.
