The Pakistan Federal Board of Revenue (FBR) has granted tax exemptions to over 2,403 Chinese-origin products, waiving sales tax, income tax, and federal excise duty for items imported through the Sost Customs Dry Port and designated solely for use in Gilgit-Baltistan.
The exemption was issued via S.R.O. 2488 (I)/2025, which establishes a special clearance procedure for goods entering Pakistan through the Sost Dry Port.
According to the notification, these tax waivers will be granted only when consignment-specific online authorization is issued within the Customs Computerized Clearance System by an officially designated authority of the Gilgit-Baltistan government.
The Collector of Customs will grant the benefit on a first-come, first-served basis within the approved quota. Any imports that surpass the designated quota for local consumption in Gilgit-Baltistan will incur the applicable sales, income tax, and federal excise duty.
The Gilgit-Baltistan government is responsible for ensuring that goods cleared under this scheme are used solely within the region.
The notification also authorizes the Collector of Customs in Gilgit-Baltistan to temporarily suspend the tax exemption if customs operations are disrupted due to protests or road blockades, in consultation with the regional government.
In instances of mis-declaration or if goods are transported outside Gilgit-Baltistan, the Collector of Customs may revoke the exemption and take action under the Customs Act, 1969.
Additionally, the Chief Collector of Customs (Enforcement) has been instructed to ensure that goods cleared under this notification remain within territorial boundaries.
The FBR stated that the Pakistan Customs Tariff codes included in the exemption will be subject to periodic review and modified as necessary. A separate mechanism will also be introduced to differentiate goods imported through Sost specifically for Gilgit-Baltistan from those intended for other parts of the country.
All applicable regulations under the Imports and Exports (Control) Act, 1950, the Import Policy Order, and the Customs Act, 1969, will remain in force for shipments entering via the Sost Dry Port, irrespective of their ultimate destination.
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