Former Chief Minister Mehbooba Mufti on Friday wrote to Home Minister Amit Shah about 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.

She said the LoC traders are in a difficult situation because the BJP government had closed the Uri-Muzaffarabad and Poonch-Rawalkote roads. This cross-LoC trade, a major confidence-building measure (CBM) between India and Pakistan, paved the way for sustainable peace but was suspended in 2019.

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Unfortunately, traders who played a crucial role in this peace-building exercise through cross-LoC barter trade are now being harassed with notices demanding tax payments for non-monetary transactions that were exempt from taxation at the time. These demands are unwarranted, unjust, and also a burden on these traders.

Cross-LoC trade started in 2008 through two routes but was halted in March 2019. In April, the Ministry of Home Affairs issued orders to suspend the LoC trade in Jammu and Kashmir. The MHA said the action was taken as the Government of India had been receiving reports that the cross-LoC trade routes were being misused by Pakistan-based elements to funnel illegal weapons, narcotics, and fake currency. The trade was based on the barter system.

Mehbooba wrote to Amit Shah on Friday seeking his intervention regarding the people of Jammu & Kashmir, particularly those 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,” she said.

“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.

Mehbooba 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 they are 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,” Mehbooba said. She urged the Home Minister to intervene in this matter and demanded that the tax demands 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 and Kashmir, which would serve as a significant confidence-building measure for the people of Jammu and Kashmir and a step towards restoring normalcy in the region.