Srinagar, Aug 9 (UNI) Former Chief Minister, Mehbooba Mufti on Friday wrote to Home Minister Amit Shah on the “plight” of cross Line of Control (LoC) traders who are now facing “demands” for tax payments on transactions that were non-monetary and tax-exempt at the time.

The Cross-LoC trade started in 2008 through two routes and was halted in March 2019. In April, the Ministry of Home Affairs issued orders to suspend the LoC trade in Jammu & Kashmir. The MHA said the action was taken as the Government of India has been receiving reports that the Cross-LoC trade routes are being misused by the Pakistan-based elements for funneling illegal weapons, narcotics, and fake currency. The trade was based on the barter system.
People's Democratic Party (PDP) President Mufti on Friday wrote to Amit Shah to bring to his attention a matter of great importance concerning the people of Jammu & Kashmir, particularly those who have been adversely affected by the suspension of the Cross-LoC bus service and trade.

“As you are aware, in 2005, the Government of India initiated one of the most significant confidence-building measures in the region, namely the Cross-LoC bus service. This initiative facilitated the reunion of divided families on either side of the Line of Control (LoC) and was a monumental step towards fostering peace and goodwill. This was followed by the opening of Cross-LoC trade through Uri and Poonch in 2008. While initiatives took shape during the UPA regime, it is crucial to acknowledge that the groundwork was laid by the NDA government under ( Atal Bihari) Vajpayee ji's leadership,” she said.
Mufti said the Cross-LoC trade, conducted on a barter system, was a unique and effective means of connecting people across the LoC without involving any cash transactions.
“However, it is deeply regrettable that both the bus service and the trade have been suspended since 2019, causing significant hardship to those who depended on them for their livelihood.
Adding to their woes, traders who participated in this barter trade are now being served notices demanding tax payments for transactions that were non-monetary and did not involve any taxation at the time. These demands are not only unjust but are also impossible for these traders to meet, given that thousands have already lost their livelihoods due to the suspension of trade,” Mufti said.

She urged the Home Minister to intervene in this matter and demanded that the tax demands must be withdrawn immediately to alleviate the anxieties of those affected.

The PDP chief also urged Amit Shah to resume Cross-LoC trade and bus service in Jammu & Kashmir, which would serve as a significant confidence-building measure for the people of Jammu & Kashmir and a step towards restoring normalcy in the region.

“I trust you will appreciate the gravity of the situation and take necessary action at the earliest,” she said.

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