In a move aimed at boosting trade and economic growth in Gilgit-Baltistan (GB), the Federal Board of Revenue (FBR) has introduced a structured system allowing tax-exempt imports from China through the Sost Dry Port. Under this updated policy, eligible Chinese goods imported for use within Gilgit-Baltistan will be exempt from Sales Tax, Income Tax, and Federal Excise Duties.
According to the latest FBR notification, more than 2,400 Chinese products identified under specific PCT codes qualify for this concession. The exemption will remain effective through 2025, aligning with the government’s broader goal of promoting regional trade, particularly via routes connected to the China-Pakistan Economic Corridor (CPEC).
How the Tax-Free Process Works
To benefit from the exemption, importers must obtain online approval for each consignment through the Customs Computerized Clearance System (WeBOC). This approval must be issued by an authorized representative of the Government of Gilgit-Baltistan. Without this digital clearance, the tax exemption will not be granted.
The relief is available on a first-come, first-served basis within a specified quota. Once the allocated quantity is exhausted, any additional imports will automatically be subject to standard taxes and duties.
Strict Oversight to Prevent Misuse
FBR has also implemented strict monitoring measures to ensure that tax-free goods are used only within Gilgit-Baltistan. If such goods are transported outside the region or falsely declared for external use, Customs authorities can revoke the exemption and take legal action under the Customs Act.
Additionally, in cases of road closures, protests, or other disruptions affecting Customs operations, the exemption may be temporarily suspended in consultation with the Gilgit-Baltistan government.
Why This Matters in 2025
The revised framework enhances transparency, simplifies procedures for traders, and supports economic development in Gilgit-Baltistan while safeguarding federal revenue. For businesses, the takeaway is straightforward: comply with the rules, operate within the approved limits, and take advantage of the tax relief in a lawful and efficient manner.