The Federal Board of Revenue (FBR) has addressed concerns raised by traders and business bodies regarding the proposed procedure for tax-free imports meant exclusively for Gilgit-Baltistan (GB).
The tax authority clarified that a strict and transparent system has been introduced to prevent misuse and protect the interests of traders across Pakistan.
Gilgit-Baltistan has a special constitutional status, and key federal tax laws—such as the Sales Tax Act, 1990, Income Tax Ordinance, 2001, and Federal Excise Act, 2005—are not applicable in the region. Based on this status and requests from the GB government and local traders, the federal government has allowed goods imported through the Sost Dry Port for exclusive consumption in GB to remain exempt from these federal taxes at the import stage.
However, to maintain fiscal discipline, FBR has imposed an annual import ceiling of Rs. 4 billion on tax-exempt goods for GB. The Government of Gilgit-Baltistan will allocate trader-wise quotas within this overall limit.
To ensure transparency, Pakistan Customs has introduced an automated monitoring system through the WeBOC platform. This system tracks quotas in real time and automatically stops tax-free imports once a trader’s quota is fully utilized.
FBR also confirmed that strict controls are in place to prevent the movement of these goods outside GB. Any violation, including diversion to other parts of Pakistan, will result in penalties such as quota cancellation and confiscation of goods.
While federal taxes are exempt, all applicable customs duties will continue to be collected, as the Customs Act applies to Gilgit-Baltistan. FBR emphasized that this mechanism is designed to support GB’s economy without affecting fair competition or national revenue.