LoC traders under Centre’s scanner

Samaan Lateef

Tribune News Service

Srinagar, April 21

The Union Finance Ministry has initiated an inquiry against top 10 cross-Line of Control (LoC) traders in Kashmir for evading tax over goods sent and received since 2017 under the barter trade system.

The Ministry has asked the custodian Trade Facilitation Centre (TFC) of Salamabad, Uri, to provide monthly details of goods sent to and received from Pakistan Occupied Kashmir (PoK) under Section 70 of the Central Goods and Services Act of 2017.

“This office has initiated inquiry against cross LoC traders operating at TFC Salamabad in Uri and Chakkan-da-Bagh in Poonch. In this connection, you are requested to supply information of top 10 traders from TFC Salamabad,” reads a March 31 letter from Finance Ministry to the Salamabad TFC.

The Central Government has sought description and value of goods sent to PoK from July 8, 2017, while the TFC authorities have been asked to furnish details of goods received from July 8 to October 12, 2017.

The Ministry of Home Affairs had called a meeting with J&K trade officers on April 12 to review the status of the installation of full body truck scanners in Uri. As a result of the meeting, the ministry suspended the cross-LoC trade in Uri and Poonch on Thursday, saying the routes were being misused by Pakistan-based elements for illegal inflow of weapons, narcotics and currency. It said the trade would remain suspended until a stricter regulatory mechanism was put in place.

Information sought

• Cross-LoC trade was started in October 2008 with much fanfare through Salamabad, Uri, in Kashmir and Chakan-da-Bagh in Jammu
• It was done to boost businesses and people-to-people contact along LoC
• Now, the Union Finance Ministry has asked the TFC of Salamabad, Uri, to provide monthly details of goods sent to and received from PoK under Section 70 of the Central Goods and Services Act of 2017