“Pakistan occupied Kashmir, is a part of India, hence VAT will be levied on cross LoC trade” is a new dictate of Omar Abdullah’s State Government of J&K at a time when Prime Ministers of India and Pakistan are trying hard to create a harmonious atmosphere to cool down the long standing sense of enmity between the two countries. This new dictate is clearly a violation of approach India has adopted to ease out the tensions with Pakistan. It will also adversely affect the “Mohali Spirit.” Our leadership has clearly adopted an approach to accommodate political concerns of nascent democratic establishment on the other side of the border and to create qualms in the minds of Pakistanis.
Certainly, Commercial Taxes Department (CTD) has overstepped by taking such a stand on a sensitive matter without taking into consideration its repercussions. IBN has quoted Mr. Ranjit Singh, the General Manager of Cross LoC as saying, “A clarification issued by the “Commercial Taxes Department” states that VAT will be levied on LoC trade as PoK (Pakistan occupied Kashmir) is a part of India.”
This unwise order has already hit the trade hard and the Government not yet taken a remedial action. It is reported that the traders are in deep anguish and have shut down their shops and stopped the trade. The protest is going on for the last six weeks. It is worth mentioning that trade on LoC was opened as a crucial confidence building measure (CBM) between India and Pakistan to ease out situation in the strife torn State and it has its desired impact.
A report from Chakkan Da Bagh (Poonch, J&K) says, “Traders have shut down the trade to protest against the State Government’s orders to tax the traders on the goods transported from across the LoC.”
Line of Control is treated as de facto border between India and Pakistan. Originally known as the “Cease-fire Line” since 1948, it was re-demarcated following Simla Agreement (July 3, 1972) signed between Mrs. Indira Gandhi and Mr. Zulfiqar Ali Bhutto, the then Prime Ministers of India and Pakistan respectively. The part of the state that is under Indian control is known as the State of Jammu and Kashmir. Parts occupied by Pakistan are called PoK here in India and Azad Jammu and Kashmir (AJK) in Pakistan. CTD has no jurisdiction to adjudicate on territorial status of PoK and impose VAT without taking orders from New Delhi.
After suspension of trade activities, thousands of daily wagers have become jobless and have been facing great hardship. Deserted looks at the trade centre show the massive support to the shutdown.
According to Cross-LoC Traders’ Association, “This trade was duty-free till now. After two-and-a-half years, the government has abruptly ordered to levy tax.” Mr. Pawan Anand, President of the Association, refers to Standard Operating Procedures (SOP) and claims that all Cross-LoC trade is duty-free under SOP. IBN has reported, “This is the fifth instance of LoC trade being suspended. Earlier traders have protested against the cap on 50 trucks per week and only 21 items being sold. They had also demanded better communication facilities.”
“We were given three phones – one at the DC’s office, one at the custodian’s office and one hotline. Now, things are such that a trader can’t even make a call from the DC’s office,” says Pawan Anand.
The business running into crores of Rupees on an average daily and an opportunity of employment for thousands of Kashmiris have hit a rough patch for now, and so the CBM too. Certainly votaries of hate and enmity for Pakistan will be enjoying the loss of wisdom on the part of Omar Abdullah’s State Establishment.
[The writer is Gen. Sec of Forum for Civil Rights. Email: syyedagha@hotmail.com]